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Former Member
Apr 02, 2014 at 05:28 PM

External Operation w/ Vendor Provision of Material



We want to have an external operation where a vendor burns a plate of steel into a ring and sends it to us. The vendor will provide the material, not us. We will then finish processing it from a ROH to a HALB on the same production order.

The BoM has the raw material on it. Typically we would do this work inside, but for capacity reasons we are having the vendor supply material cut to the right shape in this one case.

We are still seeing a Purchase Requisition for the raw material... how can I make this go away and show up instead as a purchase requisition for the external operation?

It is still a Planned Order, not a production order yet.

I've set the control key on the routing to be externally processed. I have also allocated the component (raw sheet of steel) to the operation that will be subcontracted (burn ring).

On the External Processing area I've filled out the Purchasing Organization, Material Group, Purchasing Group, and Cost Element. (We don't have an info record). This isn't really subcontracting because the vendor is supplying the material, so I have not checked that indicator.

I've saved the routing and re-run single-item multi-level MRP, but I am still seeing purchase requisitions for the raw material.

Thanks for your help.