Purpose

An externally processed operation is not carried out within your own organization, but is assigned to a vendor, who then does the work.

This type of processing is particularly important for subcontracting. It can also provide a company with a feasible alternative to in-house processing, if capacity bottlenecks occur.

If certain components are required to carry out an external operation, you can also provide these components for the vendor. (see Provision of Components )

For externally processed operations, you can use the Business Add-In (BAdI) PP_OM_BD_BANF_HEADER_MATERIAL to transfer the header material or the relevant reference material of the production order to the purchase requisition.

You can use the BAdI ICH_BIF_WO_INF_IN to automatically confirm an externally processed operation.

Prerequisites

An operation can only be processed externally if its control key allows or prescribes external processing.

Since an external operation has to be sent to a different company, additional data needs to be maintained on the External processing tab page. You can maintain the data in the routing or in the production order.

Process Flow

When you create an order, the system creates a purchase requisition for an externally processed operation.

When a purchase order with reference to a purchase requisition is created, all data necessary to process the material externally is transferred to the purchase order. After the material has been processed, the vendor delivers the material back to stock.

Result

The goods receipt of an externally processed material causes the status of the operation to be updated:

After the goods receipt, the material can be processed further in-house, if required.