What is external processing in SAP (LO - Logistics - General)?

SAP Term: external processing

• Component: LO

• Component Name: Logistics - General

• Description: Operations performed at a different company. In work order processing, the system creates purchase requisitions for externally processed operations. The purchasing department converts these purchase requisitions into purchase orders.

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• Key Concepts: 
  External processing is a feature of SAP Logistics that allows for the outsourcing of certain production processes to external vendors. This feature allows for the transfer of production orders to external vendors, who then complete the production process and return the finished goods to the company. This feature is useful for companies that do not have the resources or capacity to complete certain production processes in-house. 
  
  How to use it: 
  To use external processing, a company must first create an external vendor in SAP Logistics. This vendor must be assigned a vendor number and all relevant information about the vendor must be entered into SAP Logistics. Once this is done, a production order can be created and transferred to the external vendor. The vendor will then complete the production process and return the finished goods to the company. 
  
  Tips & Tricks: 
  When using external processing, it is important to ensure that all relevant information about the vendor is entered into SAP Logistics correctly. This will ensure that the production order is transferred to the correct vendor and that they are able to complete the production process correctly. Additionally, it is important to ensure that all relevant information about the production order is entered into SAP Logistics correctly, as this will ensure that the finished goods are returned in a timely manner. 
  
  Related Information: 
  For more information on external processing in SAP Logistics, please refer to SAP Help documentation or contact your local SAP representative. Additionally, there are many online resources available that provide detailed information on how to use external processing in SAP Logistics.