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Production order

Hi Experts,

Can anybody please tell me,

What is difference between Internal & external prod.order.

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    author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:17 AM

    Hi Raja,

    Can you please let us know what you mean by internal & external prod order?

    Are you referring to the order created via co01 & co07 or are you referring to the operation which is outsourced within a prodn. order etc?

    If you're referring to co01 & co07, then co01 orders are created w.r.t to a material & the receiver element is the material, where-as the orders created via co07 are indirect in nature & normally created to capture rework costs & the settlment in this case is the parent order or G/L acct. or cost center.

    Regards,

    Vivek

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:14 AM

    Hi

    Internal production order --

    It means tht the production is done in house ie the material is drought in the factory and From the first stage to last stage is produced in the plant it self

    External Production

    It means the production is done in the vendor company ie the production plant will give the Reguiredm Materials to the Vendor conmaony for the Production

    The Production may be

    End- To End Production

    Sub Assembly ....

    regards

    Ramanujam

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:16 AM

    Hi,

    In SAP-PP module there is no internal & External production order concept.

    In PP production order is there. External processing is there for particular operations done at subcontracting.

    In Controlling internal orders is there. To capture the costs internal order is used.

    Regards,

    V. Suresh

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:21 AM

    There are internal orders and production orders in SAP.

    Production orders are used for capturing costs for labour and material via BOM and routing. The manufacturing cost is booked under production orders. e.g. Goods Issue for production order.

    In case of Internal orders, the cost is booked directly for cost center e.g. goods issue for cost center. This can be used for booking costs / other expences n manufacturing which can not be booked under production orders.

    Please cross check. Thank you.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:31 AM

    Hi,

    Internal production means you produce the goods inhouse, you defined this in material master MRP2-Procurement type.

    For external production processing check below link...

    external-planned-operation-in-routing

    Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:31 AM

    Hi,

    In SAP there is nothing called Internal & External Production Orders.

    In SAP we have Prodcution Orders, which is used to convert the raw material procurred from Vendors into a Semi Finiched / Finished products. This feature is used if we the required resiources like Men, Machine, Material, Maintenance etc....

    Internal Order is used for knowing the additional Cost incurred by a Cost center like Goods issue done directly to Cost Centers, Activity Timing booked against an Activity carried out on the Cost Center.

    There is something called PM order used for carrying out maintenence of a work center both Preventive / Break Down Maintenance.

    Hope this will help you.

    regards

    radhak mk

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