Step 1: The foundation
One point about soil. If you have hard clay soil, make sure that the drainage around the outhouse is good to avoid too much water getting in, because it won't want to leave (this could cause splashback).
You've got your hole. Drop a wooden box with tarpaper wrapped around it in the hole to keep moisture out. Level and even out the ground around the hole and place a foundation made of treated 4x4s around it. The foundation will for this one was 4'x3.5' (this allowed a 4x8 sheet of plywood to be cut at 3.5ft, one piece for the floor and the other for the roof with an over hang. 4'wide on the floor and 4' deep for the roof).
Step 2: The Frame
Note the hole cut in the floor for the "business". I recommend coating the inside of the seat section with plastic to keep "it" from getting all over the wood after a curry night.
I sheeted it with 1/4 plywood and used 1/2ply for the floor, roof, and seat. I put my seat at 1'5" high, as you can see in the photo.