OSP Process in brief

Outside Processing Setup

Typical set up needed to set the item for Outside processing is briefed below:

1. You will be defining the  services from Vendor to whom some portion of processing the manufactured item is outsourced, as a OSP item
2. Go to Inventory  à Master Items (For Purchase validation organization)

Create the item with below setup in purchase tab:

1. Purchased = Yes
2. Purchasable = Yes
3. Outside Processing Item = Yes
4. Outside Processing Unit Type = Assembly or Resource

• Define the lead times for the item. If lead times are not defined you can enter the need by date in the PO.
• In BOM, define the Outside processing department for the assembly piece that is expected to come from the Outsourced vendor