External Operation but without entire Procurement Cycle

Question

We have an operation in the Production Order, where a process is done by a vendor. However this is handled such that the Vendor collects materials across several production orders on a regular basis. The invoicing is also done late, perhaps monthly. Because of this, we find that modelling the operation as an External Operation is difficult since the PO would stay open and the Production Order cannot be closed until all the administration work is completed.
We would like to capture the external costs of the operation, as a form of immediate 'Confirmation' for that operation and posting into interim costs. Later, when the physical goods have arrived and invoiced CO can reconcile those costs against these interim costs.
Is it possible to set an Operation as External yet not have to go through entire Procurement cycle?

Answer 1

Dear
      if vendor is doing first operation, Create a semi finished material with special procurement 30 subcontracting key in material master MRP2 view  and maintain BOM of components which are sending to vendor and routing with external procurement.
Open another semi finished material for in house production and make BOM of component received from vendor i.e. subcontracting semi finished.
Result of above given procedure, there will be two documents without interlink (purchase order and production order). then you can open production order as per material available quantity and close whenever you desire and similarly for purchase order.
if vendor is last operation, procedure will be vise versa of above procedure.
Thanks
Muhammad Ashfaq
Edited by: Muhammad Ashfaq on Jul 21, 2011 6:23 AM