Set Up Subcontract Order
For the supply of the
input materials to be provided to the vendor (subcontractor) with respect to subcontract purchase orders, you have the option of creating an SD delivery from the list of stocks for a subcontractor.
In this step, you can specify a delivery type for the delivery of materials to be provided to the subcontractor.
If you make no settings here, in the standard system the delivery type "LB" is used. This means that you need make no further settings in order to use the functionality.
If you wish to set up new delivery types, you must extend all the relevant settings in SD Customizing for the delivery.
For more on this topic, please refer to 
Deliveries in Customizing for Shipping.