What is external processing in SAP (FIN-BAC-INV - Inventory Accounting)?

SAP Term: external processing

• Component: FIN-BAC-INV

• Component Name: Inventory Accounting

• Description: Operation that is at least partially handled by an external service provider. For external processing operations, the system generates a purchase requisition from the production order and then generates a purchase order from the purchase requisition. Posting: The costs of the external service including any provided parts are assigned directly to the production order to the WIP inventory. Any differences are assigned to the production order by the GR/IR clearing function.

Smart SAP Assistant

• Key Concepts: 
  External processing is a feature of SAP Inventory Accounting (FIN-BAC-INV) that allows users to process inventory transactions outside of the SAP system. This feature is useful for companies that need to process large volumes of inventory transactions quickly and efficiently. 
  
  How to use it: 
  External processing can be enabled in the SAP system by setting up an external processing profile. This profile defines the parameters for the external processing, such as the type of transactions that can be processed, the data format, and the frequency of processing. Once the profile is set up, users can submit their inventory transactions to the external processing system for processing. 
  
  Tips & Tricks: 
  When setting up an external processing profile, it is important to ensure that all of the necessary parameters are set correctly. This will ensure that all of the transactions are processed correctly and efficiently. Additionally, it is important to regularly monitor the external processing system to ensure that all transactions are being processed correctly. 
  
  Related Information: 
  For more information on external processing in SAP Inventory Accounting (FIN-BAC-INV), please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up and use external processing in SAP.