To be able to create subcontracts, a procurement category is required. The procurement category is used to create purchase order lines for subcontract lines. The procurement category is used to define the type of work a WBS line relates to. This makes it easier to find the right subcontractor for a WBS line.

You can set up several procurement categories that can be used in subcontracts. To use a procurement category in subcontracts, this setup is required:

• In the General section, the Subcontract check box, is selected for the procurement category.
• In the Products section, one product of type Service is added to the procurement category. You can only add one product to a procurement category and a product can only be added to one procurement category.

For more information, refer to Set up and maintain procurement category hierarchies.

Standard procedure

1.	Go to Procurement and sourcing > Procurement categories.
2.	In the tree, select 'In the tree, select the category you want to set as subcontracting.'.
3.	Click Edit category hierarchy.
4.	Select Yes in the Subcontract field.