External production is ordered as a service item by default: Purchase Order with service item.
If additional material is needed for the external production order: Purchase Order with service item and provision.
An external production is worked off in the following steps:
Create service items, set up warehouse, operation and resource. Create external operation, assign suppliers and items.
Pricing is indicated in the configuration wizard.
Work Order is created.
Purchase Order is created.
Incoming Goods are posted.
Provision parts are posted.
The following procedure is not recommended: Purchase Order as a Service Order. This is available only for compatibility Reasons.