A subcontract purchase requisition is either generated via the Material Requirements Planning (MRP) process or manually by a requestor. The purchase requisition is converted into a subcontract purchase order. The purchase order is subject to approval based on predefined parameters before being issued to the subcontractor. The outbound delivery is created, and the goods are picked and shipped to the subcontractor. With the supply of the finished material, the goods receipt is created. The consumption of the sent components is recorded upon the receipt of the value-added finished material. Subsequently, the invoicing process is triggered.