An outside processing location is a shipping location in which a supplier manufactures products for outside processing. To mark a location as an outside process location, select the Outside Process Location check box in Location Maintenance.
Every work center in an outside process location is assigned a supplier, ship-from address, and purchase class to be used when purchase orders are created for outside processing. This information can also be optionally set up for work centers in regular locations.
You can assign a separate shipping location to each outside supplier, or you can set up a single shipping location for all outside suppliers and set up work centers and/or bins for each supplier.