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Outside Processing functionality enables you to include supplier-sourced components and resources in your manufacturing processes. Features include: Using specialized supplier skills in your manufacturing process to help lower engineering and manufacturing costs and increase production quality Using supplier capacity to increase your overall production capacity

1) There are two methods to create the PO (Purchase Order) for 57F(4) challan -- Move Order Transaction -- Manual PO 2) In the Move Order Transaction : Once you do the move to queue from operation 10 to 20 , System invokes the Auto-requisition program to create the PO for OSP item 3) After your supplier receives and begins work on your assemblies, you can track the progress by entering intra-operation move transactions in Work in Process. For example, when your supplier confirms the start of work you might want to move assemblies from Queue to Run. Later when your supplier notifies you that the completed assemblies are being shipped back, you might want to move the assemblies from Run to Move

Routing of the components i) Operation 10 Assemble FIN1 and FIN2 ii) Operation 20 Assemble Intermediate Product and BOARD

iii) Operation 30 Paint the FIN_BOARD

1) If manual PO is created then it is not required to do the WIP Move Transaction

1. Navigate to India Local Inventory 2. Oracle Inventory > Item > Master Item 3. Create the OSP Item using item template = @Outside Processing Item 4. Apply it and click on Done 5. Click on Purchasing tab and select the Outside Processing Unit type as Assembly or Resource 6. Outside Processing Unit type --Assembly :OSP resource charges are based on the work order quantity --Resource : OSP resource charges are based on the work order quantity x the resource run rate 7. Save it and assign to respective Organization 8. Assign the Excise Item Classification to OSP Item In 11i -- Oracle Inventory > Item > Organization Item -- Query for OSP Item -- Click on DFF and Select the context as India Items -- Excise Flag = Yes , Modvat Flag = Yes , Item Class = RMIN In R12 --India Localization > Setup > Item Setup > VAT/EXCISE Item Classification

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1) Create the Assembly item using the item template = Finished Good 2) Assign the item to respective organization 3) For Assembly item , it is not required to assign the Excise Item Classification .

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1) Create Component item using item template = Purchase Item 2) Assign the component item to respective Organization 3) It is mandatory to assign the Excise Item Classification to Component item . If it is not assigned then component item will not come to 57F(4) Challan 4) Similarly define all components that are required to create the BOM

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1) Navigate to Bill Of Material 2) Routing > Resource 3) Select the Charge Type > PO Move (type PO move or PO Receipt will perform automatically requisition 4) Click on Enable for Outside Processing item and Enter the OSP Item . Passing the OSP item its mandatory If PO is created using the Move Order Transaction . System automatically create the PO using the assigned OSP item at the Resource level 5) If the PO is Created manually for OSP item then it is not mandatory to assign the OSP item at Resource level

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1) BOM > Routing > Departments 2) Location > Vision India Mumbai ***Important *** this will be the delivery location used in the PO

3) Click Resource button in Department form and link the defined Resource

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1) BOM > Routing > Standard Operations 2) Click on Operation Resource and link the Resource

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1) BOM > Routings > Routings 2) Click on Operation Resource to verify whether resource has been defaulted or not as per department setup

3) Routing is done for Assembly item

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1) BOM is defined for Assembly Item 2) BOM > Bills > Bills 3) Select the operation sequence as 10 for both component

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1) Navigate to Work in Process 2) WIP > Discrete > Discrete Jobs 3) ***Job should be released *** , by default it comes as unreleased

4) Click on Component Button to verify the all attached component for Assembly item

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1) Navigate to India Local Inventory 2) India Local Inventory > Setup > Organizations > Additional Information 3) If the Allow Dispatch Qty to Exceed Orig Qty is enable then system will allow to create the challan for more than dispatch qunatiy 4) Based on the parameters set up in the Additional Organization Information, duty will be debited at the time of removal of goods and the same can be credited on receipt of the goods. Hence there is no need to pay duty on removal of goods for sub contracting. 5) Need to take care to set up zero in the OSP Excise Pct (%) field. 6) Different reports are being provided by product to track the dispatch and receipt of goods sent under OSP transactions. User needs to keep a manual track for the receipt of goods by monitoring OSP reports.

7) OSP Return Days helps in setting threshold for tracking the material, if the goods are not received back within 180 days, duty needs to be worked out manually and the amount should be debited in the duty paying register through RG 23 Manual entry screen.

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1) Navigate to India Local Inventory 2) Oracle Inventory > Setup > Organization > Subinventories 3) It is mandatory setup and name should be only OSP

4) If the Subinventory is not defined system will popup a Note: APP-JA460480-OSP Subinventory not defined for this Organization.
while creation of 57F(4) Challan and 57F(4) Receipt

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1) Navigate to India Local Purchasing 2) Created the Purchase Order for OSP item 3) Save the Purchase Order

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1) Query the PO number in base Purchase Order form 2) Click on Shipment button to open the Shipment form 3) Click on Distribution to open the Distribution form

4) Click on Outside Service button to select the job

5) Save it and approve the Purchase Order

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1) Navigate to India Local Purchasing 2) India Local Purchasing > Outside Processing > Approved Dispatch 3) Enter the PO number and click on Create 57F4 button to create the 57F(4) Challan

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1) 57F(4) Challan is created based on PO number

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1) Once the challan is approved , System generate the Form number 2) There is no form to re-set the form number in-between the year . Form Number is re-set as per excise calendar for a year

3) It is not mandatory to dispatch all the components or their full quantities in the Primary Form itself.
If the dispatches are done in a staggered manner, the first batch could be dispatched through the Primary form. Subsequent dispatches could be done through the Manual 57F4 Forms 4) If the Allow Dispatch Qty to Exceed Orig Qty option is enabled at Organization Additional Form ,then system will allow to create the challan for more than dispatch quantity

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1) India Local Purchasing > Receiving > Receipt (Localized )

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1) India Local Purchasing > Outside Processing > Approve 57F(4) Receipt 2) Through this form you can find out the material received from OSP vendor and approve them

3) Approve Receipt button should be clicked only when you receive full quantity or when you are sure that you will not be receiving any more material from OSP Vendor

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Imp : Secondary challan will be generated for OSP item because RTV is done for OSP item

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