External processing involves the processes required when a specific production step is subcontracted to an external manufacturer. In comparison to the subcontracting scenarios covered by P2P the External processing scenario does not require material masters. If external operation is done onsite, then the service is purchased. If external service is done off-site and logistics is managed by the buyer, then a material number (unvalued) is required. The described process flow focusses on the actual manufacturing and does not consider planning and scheduling activities.