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If individual operations in a production order need to be carried out by a separate company, you need to make use of the functions for external processing .

If certain parts that are needed to make a product have to be bought in from a different company, you need to make use of the functions for external procurement . This type of procurement is also referred to as direct procurement.


In the case of external processing or procurement, you need access to information from the purchasing department.

For example, you need to know about the vendor and the conditions that apply for external processing/procurement. This information is maintained in purchasing and can be entered in the external operation or non-stock component, for example, via a purchasing info record.


If you want to use external processing/procurement functions, you first need to make the corresponding settings in the Purchasing module.


If a production order contains

  • External processing operations, or

  • Non-stock components

the system creates a purchase requisition for external processing or external procurement.

A purchase requisition is an internal document that defines the requirement for a material or a service. It authorizes Purchasing to procure a certain quantity of a material or service so that it is available on the date required.

You can see the number of the purchase requisition on the external processing screen of an operation or on the purchasing data screen of a non-stock component. If a purchase requisition changes, you can start a workflow to inform Purchasing (see Changes in Purchasing (PP-SFC) ).

Purchasing generates a purchase order from the purchase requisition, which informs the vendor which service is required, or which material is to be delivered.

For more information on purchase requisitions and purchase orders, see the SAP Library MM Purchasing Guide .