you can create an external service order from a new purchase order. you need to use order code 6 (External Service Order).

When you create a purchase order line for a part to be sent out for external service (as indicated by order code 6 in the purchase order header), the part will automatically be connected as a component part to the line when the line is saved. When the purchase order is released, the customer order flow will be started and a no-charge customer order connected to the purchase order will be created with all needed documents for the shipping of the part. The customer order type defined for the specified external service type will be used.

Thanks for the reply, we have ESO working well. My question was more related to at what point you can get the part shipped out on the customer order? does it have to be at PO stage or can it be somehow related to the RFQ process? 

Hi,

Setting the order code at the requisition level is to indicate the purchase order generated would be an external service order.

Only when the created purchase order is ‘Released’ that a component customer order is generated, to ship the item.

Thanks

Asanka