EXTERNAL OPERATION in a production order with different company code plant

[Former Member]

Hi,

in my case i am having a production order with 4 operations.

0010 milling

0020 winding

0030 cutting

0040 milling

among this opearion 0030 i want to do it in a plant which is assigned to different company code than mine.

in this case whether i should proceed with PP01 Control key with opearion plant as that plant which is lieing in diffent company code or

i should specify PP02 control key saying that plant as an external vendor for me and do PR and PO for that service .

which should i follow for my case and how cost gets updated .

[Former Member]

Since it involves intercompany transfer it is better to create a PO

Hence Proceed as below

Create a production order with till operation 20 you create that material and call it as material A

for Cutting send A and Get B after cutting operation - this cycle involves PO cycle

Send A to external Vendor through subcontracting order(through mov type 541-o) and get back B ( through 101)

Create a production order for milling and consume B, to get C after milling.

Please come back if required.

[Former Member]

Hi,

For different company code, u have to specify PP02 in the routing for external vendor. In PP02 control key indicator must be set in external opn.

Before that create purchase info record.

Enter subcontract info record in routing.

after running MRP , convert the PR to PO.

Send the material by MB1B by 541 mvt

Receive the material by MIGO by 101 mvt.

Regards,

Raja sd