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Scenario: In house production material (Header material) is produced with three operations out of which second operation is performed outside (provided to vendor) due to various reasons like Machine breakdown, capacity problems.....

BOM of the material contains three components. First operation uses first component, Second operation which is performed externally, uses second component and Third operation uses third component.

Process Flow :

Create BOM for header material as shown below with CS01 with three components as input materials.

Create routing for material with three operations and for second operation assign control key PP02 as shown below with Transaction code CA01 and no need to maintain the work center….for the second operation

Assign the materials to the respective operations as shown below

For the second operation assign external processing parameters as shown below.

Enter details of Purch. Organization, Purchasing group, Material Group and others as per the requirement.

Create the production order for the header material with CO01 as shown below

Save the Order

Go to the created Production order in change mode and select the second operation and go to operation details as shown below.

Check for the generation of Purchase Requisition in the Ext. Processing Tab.

Now release the Production Order and save the order

Issue the First and Third components to production using transaction code MB1A

Now save and components are posted

Now confirm the first Operation with transaction CO11N after completion of the same as shown below and save

Create Purchase Order with the Purchase requisition generated for the second operation with transaction ME21N


Enter all the required details and save the document. Now the purchase order created 

Check whether the second component is attached to this Purchase order or not by clicking on the Components button

Now issue this component to the purchase order with movement type 541 through transaction MB1B as shown below.

Now check the stock of second component appearing as Stock provided to vendor as shown in the below screen shot

Semi-finished product along with second component sent to vendor for executing the second operation. Once the operation completed by the vendor semi-finished product is sent back to plant for execution of third operation

Now make GR for material with the purchase order with 101 movements and during this GR second component stock is consumed which is provided to vendor 


Now check for the stock of the second component in the stock overview and it is consumed.

No need to confirm the second operation (Now confirm the Second Operation in the Production Order). When you do GR against subcontract PO, system automatically will change the external operation status as "EODL" External Operation Delivered.


Now confirm the Third Operation in the Production Order after completion of the same...

   Make the goods receipt for the production order through MB31. check the stock in mmbe

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