Introducing Production Subcontracting – External Processing (BJK)

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce production subcontracting – external processing (BJK)

Introduction to Production Subcontracting – External Processing (BJK)

How to Access SAP S/4HANA Cloud, public edition Scope Item Process Flows and Test Scripts

  1. Navigate to SAP Best Practices for SAP S/4HANA Cloud, public edition for Enterprise Management.
  2. Select a country localization from the Version dropdown list.
  3. If necessary, select the Login icon in the upper left corner to log in.
  4. Go to the Accelerators section and, under General Documents, select the link SAP Best Practices content library.
  5. Select the relevant scope option checkboxes to filter information and locate scope item test scripts and process flows.
Ignore the BPMN2 version of process flows.


This scope item demonstrates the option to execute an operation externally within a production order. This type of processing is particularly important as it provides a company with a feasible alternative to in-house processing if capacity bottlenecks occur. During the manufacturing process, when a planned order for production is converted to a production order, the system checks if any routing or work center operations require external processing. When the order is processed and the operation to be handled externally is reached, the system creates a purchase requisition. After generating a purchase order for the operation, the production step is processed by the external subcontractor. The external service is captured with a goods receipt posting. The process is finalized by receiving the subcontractor’s invoice for the service and posting the payment accordingly.

Key Process Steps

  • Create production order with subcontract operation
  • Create purchase order for external processing of services
  • Post goods receipt for subcontracted services
  • Enter incoming vendor invoice and process payment


  • Certain operations of the production order can be specified for execution by an external subcontractor.
  • In the case of capacity bottlenecks, the assembly procedure of the finished product can be assigned to a subcontractor.

Save progress to your learning plan by logging in or creating an account

Login or Register