The external subcontracting scenario involves the flow of processes required to transfer the entire production stage to an external subcontractor.

You can initiate the scenario from any production scenario.

Compared to S2P Subcontract manufacturing scenarios, the external subcontracting scenario does not require registration of transfer of raw materials and components to a subcontractor as well as return of a processed product/component.

This scenario is typically used when the production stage is performed by a subcontractor on the company's shop floor. More rarely, this scenario is used when the production stage is performed outside the company's shop floor, and transportation is managed by the company.

Purchase of an external subcontracting service follows the usual S2P Purchase standard services scenario.