To set up subcontractors, you use vendors. You can create a new vendor or mark an existing vendor as subcontractor.
For more information on setting up and maintaining vendors, refer to Maintaining vendor information.
Steps
Go to Accounts payable > Vendors > All vendors.
In the list, find and select the desired record.
Click Edit.
Expand the Subcontracting section.
Select Yes in the Subcontractor field.
Notes
You can review the list of subcontractors here: Project management and accounting -> Setup -> Advanced project management -> Subcontract -> Subcontractors. All vendors with the subcontract setup are automatically listed here.
If you hire external workers as subcontractor workers, for each subcontractor, define the applicable Wage control ledger dimension on the Subcontractors form. This is used if a related subcontractor worker posts hours on an hour journal or timesheet. This ledger dimension replaces the standard payroll allocation.