Cannot reverse to ready outside processing step for supplier service

Summary:

We created work definition for outside processing with 3 steps. We have an outside processing item defined for the supplier service. Oracle is integrated with our shop floor, so in the work order, we only want to report consumption of component, OSP service req/PO/receipt (so we have the cost), and completion of final product.

First step consumes a raw material. Second step is an outside processing service only (no material - just a service). We do not send the product out via the application. The final step records the completion. All works well and costs are correctly calculated /recorded.