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What is deference between the internal activity & external Activity in PS

Dear Friends,

What is deference between the internal activity & external Activity, if we are procuring material against project, to which activity we are assigning these materials (for Internal Activity or External Activity)

Here we are procuring material from the vendor to our plant and from our plant we are sending these materials to our client. In some cases we are updating this stock in to inventory, in some case we are not updating in to inventory.

So friends please suggest me which activity more appropriate to assign the Materials. And also please explain me why it is more appropriate?

Regards,

Hari

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 04, 2009 at 09:09 AM

    internal activity: specificaly when we are performing any activty which is internal to our organisation,

    means we r using activity and work center.

    External activity: when we r procuring material from external vendor.

    One diff betn these two activities is there is no billing/invoicing plan for internal activity , but it does exist for external activity

    Note: for procuring of material from external vendor also from both the activity.

    ashis

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 04, 2009 at 10:57 PM

    As friends answer the internal activity is used for the activities will be done by the company resources (work centers) and external and service activities will be done by third party.

    You asking about the material you should add the materials to activity you will need it during the execution of this activity regardless to it's type.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 05, 2009 at 04:24 AM

    Hi,

    Internal activity: can be used for planning and entering a service that is rendered by capacities for example - persons or machines of your own company.

    External activity: enables you to plan and procure a service that is supposed to be provided by an external resource for example - procuring an external construction service.

    It depends upon your company requirements that you want to put material procurement to internal or external activity.

    regards

    Edited by: Harsh Saxena on Mar 5, 2009 9:55 AM

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 04, 2012 at 08:42 AM

    Hello friend of mine

    as already mentioned in other answers, the internal activity can be used with work centers whereas the external activity has the possibility to create purchase orders automatically. But using external activities you add a lot of complexity to your project, dippending how you are using the project structure in your company. When you have to prochure a lot of materials via purchasing them, you have to add every time you want to prochure something a new activity. I think it's much better to use service materials or materials in general to generate requirements for your project and using always internal activities.

    I hope this helps

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