External Processing

[Former Member]

Hi,

I haave production order of A which contain operation 10,20,30,40. Now 30 is external processing and for that i want to send material A as it is its operation how i can do it?as it has no stock to post in 541 as it is in wip?what component i shd assign

[Former Member]

Thanks for help,but someoone should find this solution in SAP

[Former Member]

SAP solution is to use Subcontracting. Lots of reports, tracking and automatic material movement.

[Former Member]

Hi Althea,

can u tell me how?

[Former Member]

While creating the Routing of the material, use the Contrl key for external processing(pp02) for the operation say 30(sub-contracted). Automatically, when u run the MRP, for the operation 30 , u will find that there is a Purchase Requisition created (to be converted to Purchase Order).

[Former Member]

Exactly we had the same problem in our client place 3 months back.

Confidently i could tell you, as such there is no standard process in SAP for external processing. So, what we have to do is we have to reverse the raw material issued for the internal processing thru 262 movement type,then send the same raw material to sub-contract thru 541 from the stock. Since you dont have identical material number for a in-processed material,you could not send the inprocessed material. So this is the way to send the material to sub-contractor.

[Former Member]

What Sudhar said is right. Just one addition is there. If this is regular process for you and the operations are fixed that are to be sent out, create inprocess materials 01 and 02.

01 will consume the original RM and 01 will go out for processing. The incoming will be 03 (BOM will be defined for PO).

This 03 item will be input for your original FG.

The process is quiet lenghty but it takes care of the actual costs incurred in the manufacturing. Thats why recommended.

[Former Member]

Hi lalit,

Do u process same item component in every operation. currently how u assigned components to all of your opeartions.

regards

pradeep

[Former Member]

currently we have no sap we are sending same component challan to external processing.

[Former Member]

There is no component to assign. Technically you are sending WIP.

You will have no material list of what is at the vendor.

For us, that was an issue - no visibility.

[Former Member]

Then how u send wip,how u make challan,how u know stock of wip at subcontractor