Error: Outbound Delivery is not created against Subcontracting PO in ME2O transaction
Solution: First, you check whether the delivery type is assigned to the Supplying Plant in the configuration below.
Material Management -> Purchasing -> Purchase Order -> Setup Subcontracting Order

You assign the Supplying Plant to the Delivery Type LB.
If outbound deliveries are being created against Stock Transport Order and Sales Order. It shows that shipping point determination is fine under Logistics Execution. So, now you focus on the below Master Data.
- Whether Customer is assigned to the Vendor Master or not. It must be assigned.
- The customer must have the Sales data in all required fields.
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