External planned operation in routing

Question

Hello,
I have a scenario in my company. In the routing, an operation (heat treatment/machining) needs to be carried out by the vendor. We issue the goods (Material X) from WIP & receive goods (material X) after electroplating. Then we continue with other manufacturing process. 
Please tell the configuration steps.
Thanks,
Murthy.

Answer 1

Hi,
External Processing of Operations
Purpose
An externally processed operation is not carried out within your own organization, but is assigned to a vendor, who then does the work.
This type of processing is particularly important for subcontracting. It can also provide a company with a feasible alternative to in-house processing, if capacity bottlenecks occur.
If certain components are required to carry out an external operation, you can also provide these components for the vendor (see Provision of Components).
Prerequisites
An operation can only be processed externally if its control key allows or prescribes external processing.
Since an external operation has to be sent to a different company, additional data needs to be maintained on the External processing tab page. You can maintain the data in the routing or in the production order.
Process Flow
When you create an order, the system creates a purchase requisition for an externally processed operation.
When a purchase order with reference to a purchase requisition is created, all data necessary to process the material externally is transferred to the purchase order. After the material has been processed, the vendor delivers the material back to stock.
Result
The goods receipt of an externally processed material causes the status of the operation to be updated:
For partial delivery, the status is: EOPD (External operation - partial delivery)
For final delivery: EOFD (External operation - final delivery)
After the goods receipt, the material can be processed further in-house, if required.
Subcontracting Steps:
1. Define all the materials in your plant (subcontracting and packaging etc).
2. In the material master MRP 4 view there is one field in which you can mention that this material is not relevant to MRP planning, use this field for subcontracting material so that it will not be planned in MRP runs ( generally use this field for re-order point planning).
3. In the BOM for the subcontracting material put the special procurement key as Subcontracting and do not keep relevance for costing.
4. If you're using packaging material of your company and want to capture the cost of these materials in the subcontracting production order then put relevance for cost.
5. Define alternate BOMs for each customer.
6. Generally the routing will be the same but materials will change, define different prodcution versions for each alternate BOM and assign to the routing.
7. Define the activite types for packing and mixing in the work center and assign them to the cost center, use these for your routing.
8. Whenever you recive a sub-contracting order, use the relevant production version depending on the customer.
9.Please use control key PP02 (customizing in OP00)in routing and maintain
info record for subcontracting vendor
Hope this will help you.
regards
radhak mk