SAP Business One does a good job with outsourced manufacturing. There is an enhancement to SAP Business One that can make the processing of outsourced manufacturing much easier. The add-on is called Octave Outsource from Octave Solutions. The features of the add-on are:
- Automatically creates a production order upon creation of a purchase order line to purchase the outsourced labor.
- Automatically receives against the production order at the time a receipt is processed against the purchase order.
- Backflushes the components needed to produce the manufactured item.
- Closes the production order when the purchase order has been fully received.