The external refurbishment process involves taking material, transferring it to a vendor location for refurbishment, receiving the refurbished material back, and processing payment. Key steps include creating a purchase requisition and purchase order to send material to a vendor, receiving the refurbished material back, and verifying invoices for payment processing.

1. External Refurbishment Process
Department
PM/ CS
Purchasing Finance Inventory/ Stores Shipping Vendor processing
Phase
Start
(Requirement)
Release
NO
End
Create (PO)
Refurbishment
Order
(Subcontracting)
Create (PR)
Purchase
Requisition
POrelease
2nd
Level
POrelease
1st Level
Material held
for
Refurbishment
GRfrom
Reservation
961 mvt type
ReturnReservation forREPAIRABLE material
Transfer
postingfor
SCprocess
541 mvt type
Shippingtovendor location Refurbished
GRfrom
vendor
(refurbished
material)
Receive back material fromvendor
Automatic postingof components 543 mvt type
Invoice
verification
Payment processing