SyteLine Outside Processing Configuration Guide
Outside processing in SyteLine handles manufacturing operations performed by subcontractors, such as heat treating, plating, painting, or specialized machining. Configuring outside processing correctly ensures purchase orders are automatically generated for subcontracted operations, costs are properly captured on production orders, and material is tracked as it moves to and from vendors. Misconfigurations lead to cost variances, inventory discrepancies, and scheduling gaps.
Outside Processing Work Center and Vendor Setup
Outside processing starts with creating dedicated work centers flagged as outside operations. In the Work Centers form, set the Outside flag to 'Yes' and assign the default vendor in the Vendor field. This tells SyteLine that operations assigned to this work center require vendor involvement. Create a separate work center for each subcontractor or subcontracted service type (e.g., WC-HEAT for heat treatment, WC-PLATE for plating) to enable accurate cost tracking and vendor performance analysis. On the vendor record, configure the default outside processing lead time in the Vendors form's Manufacturing tab—this lead time includes transit time to the vendor, processing time, and return transit time. The lead time feeds into APS scheduling so the scheduler accounts for the full round-trip when placing outside operations on the timeline. Configure the outside processing item in the Items form as a service item with a standard cost matching the expected vendor charge per unit or per lot, which drives job costing calculations.
- Create dedicated work centers with Outside flag = Yes and default vendor assignment per service type
- Set outside processing lead time on vendor records including transit to vendor, processing, and return
- Configure service items for outside processing with standard costs matching expected vendor charges
- Create separate work centers per subcontractor for cost tracking and vendor performance reporting
Automatic PO Generation and Cost Tracking
When a production order with outside processing operations is released, SyteLine can automatically generate purchase orders for the subcontracted work. Enable this through the Outside Processing Parameters form (Menu Path: Production > Production Setup > Outside Processing Parameters). Configure whether POs generate on job release, job firm, or manually through the Generate Outside Processing POs utility. Each generated PO references the production order number and operation, creating a traceable link between the job and the vendor order. Cost tracking for outside processing flows through two channels: the PO cost (actual vendor charge) and the routing operation cost (standard rate from the work center). The variance between these amounts is captured as an outside processing variance in the job cost analysis. Configure the variance tolerance percentage in Production Cost Parameters to flag jobs where outside processing costs deviate significantly from standards—this triggers alerts for vendor cost negotiation.
- Enable auto-PO generation in Production > Production Setup > Outside Processing Parameters
- Configure PO trigger timing: on job release, on job firm, or manual generation via utility
- POs reference the production order and operation number for complete traceability
- Track outside processing cost variance between PO actuals and routing standard costs per job
Material Shipment and Receipt Processing
Outside processing requires tracking material as it physically moves to the vendor and returns. SyteLine provides two material flow models: ship-to-vendor with return receipt, or direct transfer using the Outside Processing Shipment form. In the shipment model, create a shipment record when material leaves your facility bound for the subcontractor—this moves inventory from the production warehouse to an In-Transit or Vendor location configured in the Locations form. When processed material returns, use the Outside Processing Receipt form to receive it back into inventory and simultaneously post the operation completion on the production order. The receipt triggers both the inventory transaction (moving material from In-Transit to production warehouse) and the labor/machine posting (recording the operation as complete on the job routing). For vendors who receive raw material and return finished goods across multiple jobs, use the Vendor Managed Outside Processing form to track material balances at the vendor site. Configure inventory aging rules for material at vendor locations to flag items that exceed expected processing lead times.
- Track material shipment to vendor using Outside Processing Shipment form with In-Transit location
- Receipt processing simultaneously records inventory return and job operation completion
- Use Vendor Managed Outside Processing form for ongoing material balance tracking at subcontractors
- Configure inventory aging alerts for material at vendor locations exceeding expected lead times
Setting up outside processing in SyteLine? Our consultants configure subcontractor workflows that maintain cost accuracy—reach out for guidance.
Related Resources
SyteLine Production Order Configuration Guide
Configure SyteLine production orders. Job order types, status workflows, numbering schemes, and manufacturing execution setup for CloudSuite Industrial.
Infor SyteLineSyteLine Routing Setup and Configuration Best Practices
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Infor SyteLineSyteLine Production Costing Configuration Guide
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