diff --git a/erpnext/docs/assets/img/manufacturing/subcontract3-reserved-material.png b/erpnext/docs/assets/img/manufacturing/subcontract3-reserved-material.png
new file mode 100644
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+++ b/erpnext/docs/assets/img/manufacturing/subcontract3-reserved-material.png
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diff --git a/erpnext/docs/assets/img/manufacturing/subcontract3.png b/erpnext/docs/assets/img/manufacturing/subcontract3.png
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diff --git a/erpnext/docs/user/manual/en/manufacturing/subcontracting.md b/erpnext/docs/user/manual/en/manufacturing/subcontracting.md
index 925afe3..5abf0c6 100644
--- a/erpnext/docs/user/manual/en/manufacturing/subcontracting.md
+++ b/erpnext/docs/user/manual/en/manufacturing/subcontracting.md
@@ -27,10 +27,14 @@
 
 <img class="screenshot" alt="Sub-Contracting" src="/docs/assets/img/manufacturing/subcontract2.png">
 
-__Step 2:__ Make a Purchase Order for the processed Item. When you “Save”, in the “Raw Materials Supplied”, all your un-processed Items will be updated based on your Bill of Materials.
+__Step 2:__ Make a Purchase Order for the processed Item. When you “Save”, in the “Raw Materials Supplied”, all your un-processed Items will be updated based on your Bill of Materials. You can also select the warehouse from which the material would be reserved for sub contracting.
 
 <img class="screenshot" alt="Sub-Contracting" src="/docs/assets/img/manufacturing/subcontract3.png">
 
+Once the PO is submitted, you can view the reserved quantity of the item from the item dashboard as well.
+
+<img class="screenshot" alt="Sub-Contracting" src="/docs/assets/img/manufacturing/subcontract3-reserved-material.png">
+
 __Step 3:__ Make a Stock Entry to deliver the raw material Items to your Supplier.
 
 <img class="screenshot" alt="Sub-Contracting" src="/docs/assets/img/manufacturing/subcontract4.png">
@@ -46,6 +50,10 @@
 > Note 2: ERPNext will automatically add the raw material rate for your
 valuation purpose when you receive the finished Item in your stock.
 
+> Note 3: ERPNext will automatically default the Reserve Warehouse in the PO
+from the BOM. If not found in the BOM, it would default it from the default
+warehouse setup in the Item.
+
 ### Video Help
 
 <iframe width="660" height="371" src="https://www.youtube.com/embed/ThiMCC2DtKo" frameborder="0" allowfullscreen></iframe>