Particular operation to be done in another plant-Req to let me know how to do step by step

Question

Dear all,
Kindly find below image
Customer required 0020 operation,this production has to be done in another plant of the same company not by other vendors.
I.E first operation production will be done in same plant(Plant 1)
Second operation production will be done in another plant of samy company(Plant 2)
Third operation production will be done in first plant(Plant 1)
Requesting you all to tell me how to process this scenario step by step.
For your information Fg material is 2244EH    Raw material is 3322WR
Regards
Rajasekaran

Answer 1

Hi Raja,
Two ways you can handle this process.
Process 1:
In Routing define operation 0020 as subcontracting
Create other plant as Vendor and assign the same along with revelent cost element and convertion rate(Net price) per unit.
If any raw material needs to be issued for this external operation then assign the material for the operation in routing.
When order is created system will generate Purchase requsition for the external operation which subseqently needs to be converted to purchase order.
Goods issue to purchase order using MB1B - 541 Movement type if raw material needs to be issued.
Once external operation is completed then do GR against the PO.
PO conversion cost and material issue cost will hit on to the production order.
Do confirmation of the external operation in Plant1.
Advantages : Proper tracking of external operation and cost accounting on production order
Process 2:
In Routing screen as displayed below for operation 0020 maintain the work center and plant2, provided this work center to be created in plant2
As like operation 0010, confirm operation 0020. In system it will display that operation is done in Plant2 work center. According to the activity rates maintained in KP26 for the combination of cost center and activity, cost will hit onto the order
In COOIS -Operation reports system will display that operation in done in plant 2.
Advantage: Simple process as suggested by experts. You will not have any tracking mechanism like process 1.
Now decide based on client business requirement which process to be followed.
Thanks & Regards,
Ramagiri