Outside Processing

[#1]

Dear All,

Can you guide me with steps through outside processing and subcontracting operation?

It will be appreciate if you guide with configurations and walkthrough steps scenario.

Thank you

[Former Member]

Dear Rafik,

You can do external processing or subcontracting purely from MM perspective or you can trigger the procurement from PP . If you want to trigger the procurement from PP there are two ways . One way by mainatining the procurement key F for external procurement or F 30 for sub-contracting and during MRP run system directly generates PR for the requirement.

In the second ,you can use a control key PP02 for a dummy operation and assigning the material to that operation with all the purchase related information . In this case the release of the production order generates a PR for that material.

Once the PR generated , MM people will convert it to PO , issue raw material or semi finished material against sub-contracting PO using 541.