You said Subcon vendor will add some components and after job work is done return the final product to you. Do you procure the additional components added by vendor then? If yes, are they excisable material? please confirm your complete process including excise processing.
1) You will have to add the components (that are added additional by your subcon vendor during processing) into Subcontracting BOM.
2) Create a Subcontracting Purchase order with first line item for Parent material with Item category "L" subcontracting. Also insert the second line item for the additional component added by vendor with Standard item category. Ensure you have added Sucon vendor in the Vendor code field with Subcontracting check under PO item detail in delivery address tab.
3) Perform Stock transfer against Subcontracting Purchase order for the components issued from your factory.
4) Since component is not excisable, you donot need to prepare Challan for the same.
5) Perform Goods receipt for the second line item of PO. As soon as you post the Goods receipt the stock gets updated at Subcontractor end.
6) Create subcontracting challan for the PO second item if the Material is excisable in J1IF01 referring 101 O Material document.
7) Perform Goods receipt against Subcontracting PO line item 1 and ensure you refer the subcontractin challan while performing MIGO.
8) Now reconcile the challan for the component added by subcontracting vendor in J1IFQ.
9) Complete the challan in J1IF13.