Spare materials sending out for repair

All,
Pls see the scenario :
This is a project in Egypt .
Spare materials , for some repairs business will send outside the factory to some vendors for repair .
After repair same material will take back .
1. Whether this is subcontracting or comes in services ?
2. Whether we can use (parts provided to vendor ) ?
Kindly advise.
regards,

Hello Sandeep,
Yes, absulately this is subcontracting scenario.
In my previous project, the client use to send Machine shaft for polishing purpose so we applied the same scenario, but without split valuation.
In you case, the final product and component product can be the same or you can use split valuation as suggested by Manish.
When you create the purchase order for subcontracting put the material number as final product and also as component (qty will be the same). We are just paying for service.
If you use service order then you want be able to track the qty of material which is provided to the vendor.
Hope this helps.
Regards
Arif Mansuri

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