How Items Are Set Up for Outside Processing

In addition to the finished goods and components, you must define an outside processing service item in Product Information Management to represent the value added service, such as plating.

The service item is used to account for the supplier contribution in the build process. The outside processing item is referenced in the purchasing and shipping documents, and is used to receive goods against an outside processing purchase order.

The outside processing service item also represents the outgoing partially completed assembly shipped to the manufacturing partner. For example, machined partially finished assemblies that are sent to the manufacturing partner for plating.

The service item also represents the incoming partially finished assembly received from the manufacturing partner. For example, plated partially finished assemblies received from the manufacturing partner. Receiving the outside processing item implicitly means receipt of the incoming partially finished assembly.

If you've defined the finished goods item as a dual units of measure item, which means the Tracking Unit of Measure is set to primary and secondary, you should also define the outside processing service item as a dual units of measure item.

The outside processing service item set up with defaulting control as Fixed and Default are supported, whereas No Default isn't supported. You're not allowed to create an outside processing service item with defaulting control No Default in Product Information Management. The application enforces that the primary UOM of the finished goods item is the same as the primary UOM of the outside processing service item. It's recommended that if the finished goods item and outside processing service item are both dual units of measure, you set up their secondary UOM, positive, and negative deviation factors, and item intraclass and interclass conversions identically. The application doesn't enforce these validations.

Note:

For more information about setting up items for outside processing, refer to the Oracle Fusion Cloud Supply Chain Management Using Product Master Data Management guide.