# Oracle EBS Outside Processing and Production Scheduling > Source: https://netray.co/erp-help/oracle-ebs-outside-processing-setup-production-scheduling > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer Outside processing (OSP) in Oracle EBS lets a discrete job send work to a supplier, such as plating or heat treat. You define an outside processing item, an OSP resource with a charge type, a department that owns it, and a routing operation that uses it. When the job is released, WIP drives a requisition to Purchasing; receiving against the PO charges the job. ## Kind how-to ## System oracle-ebs ## Erp Oracle E-Business Suite ## Module WIP / Purchasing / Discrete Manufacturing ## Query oracle ebs outside processing ## Alternate Queries - oracle ebs production scheduling - oracle ebs mfg - oracle wip outside processing item resource setup - oracle discrete manufacturing scheduling ## Applies To Oracle E-Business Suite 12.1 and 12.2 Discrete Manufacturing with WIP, Bills of Material, Purchasing and Inventory. Details such as profile values vary by release. ## Steps ### How to set up outside processing **Items:** - Create the outside processing item in the Master Item form with the Outside Processing Item attribute on, a purchasable flag and a unit of measure matching how the supplier prices (for example each or pound). - Define a resource in Bills of Material > Routings > Resources with the Outside Processing check box on and a charge type of PO Receipt or PO Move. Link the OSP item to the resource and set the unit of measure. - Create a department (Bills of Material > Routings > Departments) and assign the OSP resource to it. - Add an operation to the routing for the department and include the resource, with the usage rate and basis (item or lot). - Create the job in WIP > Discrete > Discrete Jobs with the routing. Release it. - On release, WIP populates the requisition interface; run Requisition Import in Purchasing to create the approved requisition. - Use Autocreate to turn the requisition into a PO, send it to the supplier, and receive against it. With PO Receipt charge type, receipt charges the resource and can move quantity. - Check the job in the Operations and Resources views and in the OSP cost reports. ## Sections ### How the pieces fit **Body:** The routing is where the supplier step lives. The operation points to a department; the department holds an OSP resource; the resource points to the OSP item that Purchasing buys. The charge type decides when cost lands on the job. PO Receipt charges when goods are received from the supplier, and PO Move also moves the job quantity to the next operation on receipt, while the Manual charge type applies to non-OSP resources. The item you buy does not have to be the item the job makes. The OSP item represents the service. The job's own assembly item travels out and returns, and the unit costs from the PO price and any variance accrue to the job. ### How production scheduling works in EBS **Body:** Discrete job scheduling uses operation times, resource usage rates, department calendars and shifts defined in Bills of Material, plus item lead times. When you create or reschedule a job, WIP can schedule forward from a start date or backward from a completion date, producing operation start and end dates. That scheduling is infinite capacity: it does not check whether the resource is overloaded. For finite capacity and supply-demand planning, companies use Advanced Supply Chain Planning, or Oracle Manufacturing Scheduling in some setups, while the planned order release feeds jobs back to WIP. Check which planning product your site licenses before designing a process. **Code:** -- Jobs with outside processing resources, quick check SELECT wo.wip_entity_id, wo.operation_seq_num, wor.resource_id FROM wip_operations wo JOIN wip_operation_resources wor ON wor.wip_entity_id = wo.wip_entity_id AND wor.operation_seq_num = wo.operation_seq_num AND wor.organization_id = wo.organization_id WHERE wo.organization_id = :org_id ### What goes wrong in practice **Body:** Most failures are in requisition creation. If no requisition appears after release, check that Requisition Import ran and look at the PO requisition interface errors, such as missing buyer, category or approved supplier list entries. See the page on requisition import errors for details. Cost surprises come from price differences between requisition and PO, and from receipts posted to the wrong organization. Reconcile through the outside processing and job cost reports before period close. ## Pitfalls - Forgetting to link the OSP item to the resource, so release creates no requisition. - Choosing PO Receipt when you need the job to move automatically, or the reverse. - Mismatched units of measure between the OSP item and the resource usage rate. - Assuming WIP scheduling is finite; it ignores resource load. - Closing a job before the supplier invoice is matched, locking in estimated cost. ## Ai Angle An assistant grounded in EBS data (ERPray, read-only and showing its SQL) can list released jobs with OSP operations that have no requisition or PO, show which supplier is late against the scheduled date, and explain a price variance on a given job. For defense and aerospace sites running EBS on-premises, a locally hosted model keeps job and supplier data inside the network. For the setup itself, your Oracle documentation and a functional consultant remain the right source. ## Faq ### What is outside processing in Oracle EBS? **Answer:** Outside processing sends part of a discrete job to a supplier, such as plating, using a purchase order. The supplier step is an operation in the routing, with an outside processing resource linked to a purchasable service item. ### What is the difference between PO Receipt and PO Move charge types? **Answer:** PO Receipt charges the resource cost when the goods are received. PO Move also moves the job quantity forward to the next operation as part of the receipt, so shop floor staff do not need a separate move transaction. ### Does Oracle EBS do finite production scheduling? **Answer:** Core WIP scheduling is infinite capacity using calendars and rates. Finite scheduling and supply-demand planning need additional products such as Advanced Supply Chain Planning, depending on what your organization licenses. ### Why did releasing a job not create a requisition? **Answer:** Common causes are a missing link between the OSP resource and item, a non-purchasable item, or Requisition Import errors. Check the requisition interface error table and the concurrent request log. ## Search terms oracle ebs outside processing, oracle wip outside processing, oracle ebs osp item resource, oracle ebs production scheduling, oracle ebs discrete manufacturing, oracle ebs mfg, oracle ebs subcontract operation --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json