External Processing in SAP

Optimization solution of SERKEM:
Automation in process and accounting of individual steps

Your Requirements

  • External processing with or without material provision
  • Purchases with material number instead of purchase requisitions
  • Stock overview of the incorporated pieces
  • Fully adequate shipping process for externally processed operations

Our Solution

  • Automatic purchase order generation at order creation
  • Automatic generation of deliveries at confirmation
  • Shipping scan external processing
  • Accounting of outgoing goods external processing purchase
  • Monitor for external processing

Your Advantages

  • Automatic confirmation depending on fixed parameters
  • Simplified, manual accounting steps
  • Optimized generation of order-based purchases
  • Optional mapping of shipping transports in SAP
  • Analysis options

The SERKEM Solution in Detail

External processing in the SAP standard

For the process steps involved in contract manufacturing, the SAP standard is usually sufficient. Relevant documents are available, and all necessary steps and documents can largely be generated and posted using standard functions.

However, with subcontracting related to a production order, the standard reaches its limits, especially since suppliers rarely report the exact consumption of materials, making tracking even more difficult.

Subcontracting in the SAP Standard

In the SAP context, subcontracting or the “extended workbench” refers to the handling of specific processing steps directly within the production order, such as refinement through coating or painting.

In subcontracting processes, components can optionally be provided to the supplier. Depending on the situation, subcontracting in the production order can be carried out with or without the provision of materials.

  • Automatic triggering of order proposals by approval of a production order to external processing
  • Price determination in the supplier currency
  • Information from purchasing in the external operation can be deposited over the purchasing info record or the contract assignment
  • The SAP system creates purchase requisition/scheduling agreement line for the externally processed performance if the externally processed operations or the non-stock components are included in the production order
  • Purchasing generates orders from purchase requisition
  • Generation of external processing with or without service specifications
  • Marking of operations for external processing over control keys

  • Generation of purchase requisitions without independent disposition level/ independent material (in stock)
  • Purchase requisition without material number in the SAP system with account assignment to the corresponding production order
  • Missing material number as possible reason for settlement problems at shipping/appropriation from the service provider
  • No inventory overview of processed pieces at the supplier

The solution of SERKEM, which is completely realized in the SAP standard, remove this disadvantages and makes a comfortable and transparent mapping of the external processing possible:

The area of external processing will be controlled over the working schedule of the production order.

The basic settlement of external processing will proceed in the PP-module, based on the deposited controlling data and production orders of the working schedule.

The mapping takes place through three operations in the working schedule with special control keys.

New elements and automatic steps additionally support the SERKEM-process of external processing in SAP.

At a Glance

For automation in process and accounting of individual steps at the external processing, the SAP solution of SERKEM supplies advanced process steps:

Automatic generation of deliveries at confirmation

The external processing purchase to an external processing is automatically generated to the order account assignment- either at the order release or at the operation “shipping scan”. The outbound delivery is created and the printing of the external processing document as well as the SD transport to the shipment can be initiated.

Possible exception control:

If the confirmation operation isn´t the first one or it is without provision, the automatic purchase creation at order release doesn´t take place.

If the externally processed operation B follows the operation A, the generation of outbound delivery for the shipping process takes place in the background as well as the optional printout of the external processing document at the confirmation from the preceding operation A.

Thereby, the external processing document can be issued as delivery-related message. Therefore it is guaranteed that the delivery receipt in SAP has been correctly created and the goods can be marked immediately. Even the registration and therefore the shipping of subsets of the operation quantity are possible.

Based on the external processing document, a shipping scan is possible. An optional SD transport is built in SAP to the container/deliveries with dispatch note over those shipping scan. If supplier or his details are the same as goods receiver in external processing, various container/deliveries can be successively combined to one transport.

Beside the generation of the SD transport, the operation in the PP order, which belongs to the respective shipping scan, will be optional automatically confirmed.

In the amount of the recorded quantity, the purchase requisition will be implemented to the externally processed operation and automatically printed in the background. Even the registration of partial quantities is possible.

With the goods receipt posting to an external processing purchase per MIGO, the belonging order operation in the amount of the goods receipt quantity will be optional automatically confirmed.

The confirmation to the order takes place completely as an automatic background step. The printout of a move card for subsequent operations will be also initiated in the order.

At this section of a production-attendantly document, all relevant operations from the externally processed operation are included in the order quantity.

The monitoring of all running or planned external processings is possible over the working plan or production order.

The monitoring transaction for running external processings in the SAP solution of SERKEM is controlled from production orders with reference to the created purchase and delivery receipts.

  • Automatic generation of outbound deliveries in SAP to every container of an externally processed operation in a production order incl. container labelling
  • Optional transport/shipment creation via expiry on the scanner  by registration of the delivery-based container quantities
  • Completion status in the SD transport for outgoing goods posting of the shipment and release of the printout for the transport
  • Updating of comprehensive document flow in SAP: order operation, purchase and incoming goods receipt,  operation confirmation, shipment, transport
  • Coupling of operation confirmation of the externally processed operation and incoming goods posting to the purchase
  • Reporting function in SAP to the complete status of an external processing within a production order
  • Activation of automatic confirmation depending on fixed parameters
  • Optimized creation of an order-based purchase to the service provider
  • Possibility of analyses of executed transports: representation/reporting of status and DLZ of externally processed operations
  • Establishment of requirements of assignment possibilities for arising transport costs (shipment cost settlement)
  • Simplified, manual accounting steps as well as clear assignment of printing documents with barcode possibilities for optimized registration
  • Optional mapping of shipment transports in SAP for shipment creation to the external vendor

SAP Fremdbearbeitung Prozessschritte

The existing functional deficits in the SAP standard in the area of shipping and transport settlement for the transfer of processed goods to the contract manufacturer will be completely closed through the tried and tested add-ons of SERKEM. The standard document flow via production order in the background of the settlement makes furthermore the base of the process.

Relevant monitors for the production of the necessary document flow between production order operation, purchasing receipt and outbound delivery round off the range of functions furthermore the SAP standard off. For a paperless usage over scanner, the steps along the receipt way for registration can be optimized and automated.

Optimization of individual process steps in the course of an external processing, based on a SAP external processing order

With the add-ons of SERKEM, the automatic confirmation of externally processed operations in the production order will be possible. Thereby the confirmation takes place during the posting of incoming goods to the order-based purchase.

The automatic confirmation of the externally processed operations can be activated depending on plant, control key, supplier, material etc. The efficiency in settlement of external processings will increase.

Further informationen

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