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Difference in external processing with key 20 and 30 & also service order

Hi Gurus,

Kindly explain me in detail what is the difference between EXTERNAL PROCESSING procurement key 20 & SUBCONTRACTING procurement key 30 with any example and how to map the difference in system? and in what case we go for SERVICE ORDER?

Regards,

Aman

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3 Answers

  • Best Answer
    Posted on Sep 28, 2011 at 12:13 PM

    Hi,

    Special procurement keys 20 and 30 are not relevant to production orders. You must not use them if you will do external procurement with control key PP02. Use in-house production procurement key E, and open production orders for the operation. According to the description of your scenario this treatment is a constant part of manufacturing of the material, so why not including this step as the last operation to the routing of the material already in use.

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  • Posted on Sep 27, 2011 at 10:46 AM

    Dear,

    Special procurement type 20 is used for purchasing the material from vendor.

    Special procurement type 30 is use for Sub-contracting purpose. ie., You are supplying a material to vendor and receiving it after some value addition.

    Regards,

    Alok Tiwari

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  • Posted on Sep 27, 2011 at 01:49 PM

    Hi,

    Check the customization settings for special procurement types, under PP->Materials Requirement Planning->Master Data->Special Procurement Types.

    20 is no different than F. If you use it with procurement type E, the material starts to behave like standart F. In 30, a subcontracting PO is created for the material, dependent requirements are created for components. You have to issue components to vendor stock by MIGO 541. During goods receipt components are also issued from vendor stock by 543 movement.

    Service orders are used in customer service when goods returned from vendor. They serve mainly for collecting costs and revenue of customer services. No connection with special procurement types or MRP.

    Regards.

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