External processing is when you have individual production steps, that is operations or sub-operations, carried out outside of your company by a vendor.
You enter the data you need for awarding and processing external processing contracts in the operation or sub-operation. When you create a production order the system automatically creates a purchase requisition for the operation or sub-operation
You have installed the application component Purchasing (MM-PUR).
The relevant purchasing master data are created in this component (see R/3 Library MM- Purchasing, Master Records from the Purchasing View).
Entries in Routings
You decide whether an operation or sub-operation is processed externally via its control key. You also determine in the control key whether externally processed operations are scheduled on the basis of their standard values or the planned delivery time.
Additionally you enter the following data that is required for the further processing of the order.
In subcontracting operations the assigned material components are automatically provided.
You can however remove individual components from the list of components to be provided. To do so, set the material provision indicator correspondingly in the BOM item.
If known, you can enter the purchasing info record of a particular vendor with the responsible purchasing organization. You require a purchasing info record that does not have a material master record and is intended for procurement types Normal or Subcontracting.
The relevant vendor data are then copied from the purchasing info record.
Otherwise you enter the sort string, material group and the planned delivery time.
Purchasing will then pick a vendor, using this data, when the purchase order is created.
You need this information to settle externally processed operations and sub-operations that have been marked as relevant for costing in their control keys.
Processing Externally Processed Operations During Order Processing
When a production order is created, the external processing data is copied to the production order. You can change this data in the production order.
When you save the production order, the system automatically creates a purchase requisition for the externally processed operations and sub-operations. This is then processed in purchasing.
You enter the control key when you edit operations and sub-operations on the overview screen.
You enter the remaining external processing data on the detail screen of the operation or sub-operation.