External Processing

Purpose

You can use external processing to have individual process steps, that is operations or phases, carried out by a different company. This process describes how externally processed steps are treated in order processing.

Prerequisites

You have installed the application component Purchasing ( MM-PUR) .

The relevant purchasing master data has been created there (see the SAP Library MM- Purchasing, sectionMaster Records from the Purchasing View ).

The following data has been maintained for the phase or secondary resource (refer to External Processing Data Maintenance ):

  • A control key that allows external processing

  • The detail data on external processing

  • In subcontracting phases, allocations of the material components to be provided

Process Flow

  1. When you create a process order, the external processing data of the phases and secondary resources is copied to the order. You can still change this data in the process order.

  2. When you save the process order, the system creates a purchase requisition for externally processed phases and secondary resources for the quantity of the phase or secondary resource.

    Depending on the data entered in the master recipe, the purchase requisition created is of type Standard purchase order or Subcontracting and is assigned to the process order account. In addition to the external processing data, the system also copies the short text for the phase or secondary resource to the purchase requisition.

    The purchase requisition number is copied to the external processing data of the phase or secondary resource in the process order (see General Data detail screen).

    Note Note

    If you later change the dates and quantities in the order, these changes are automatically copied to the purchase requisition. However, they are not copied to an existing purchase order.

    End of the note.

  3. Purchasing converts the purchase requisitions into purchase orders.

    In subcontracting phases, the allocated material components are automatically provided in the purchase order.

    In subcontracting secondary resources, you must enter the material components to be provided to the vendor in the purchase order yourself.

    In the process order, the system sets the P.O. exists (Purchase order exists) indicator in the external processing data for the phase or secondary resource.

  4. By monitoring the material stocks to be provided to a vendor, inventory management determines whether all material components in a reservation are available. If required, it makes a transfer posting to this stock for the material to be provided (movement type 541).

  5. The vendor externally processes the phase or secondary resources.

  6. After external processing has been completed, you post a goods receipt for the warehouse for the purchase requisition (movement type 101).

    The following activities are carried out at the same time:

    • In the case of subcontracting purchase orders, the system posts a goods issue for the material to be provided (movement type 543).

    • The quantity from the goods receipt is copied to the external processing data of the phase or secondary resource in the process order.

    • The phase or secondary resources receives status EOPD , External operation partly delivered or EODL, External operation delivered

    • The process order account is charged with the costs for external processing and the material to be provided

See also:

SAP Library MM- Purchasing Guide