Skip to Content
author's profile photo Former Member
Former Member

Subsequent Adjustment for Subcontracting

Hi,

when we do Subsequent adjustment for Subcontracting in MIGO wherein Subcontractor use 1 more qty as comapre to mentioned in BOM.

then Accounting entry would be

Consumption A/c Dr - 1500/-

Stock A/c Cr - 1500/-

pls explain me the same cost would not impact on the following entry:

Stock A/c Dr.

Change in Stock.

Regards

Nitin

Add a comment
10|10000 characters needed characters exceeded

Related questions

4 Answers

  • Best Answer
    Posted on Apr 29, 2016 at 03:40 PM

    Dear NITIN,

    Superb explaination in the said note share by Mr. Prasoon. Bottom line in note is

    Example:

    Initial Good Receipt Qty of Parent Material =10

    Currently Stock Available Qty: 9

    Value of Roh Material: 100

    "In the above mentioned example, the previous goods receipt quantity is 10 PC. If the current stock quantity before subsequent adjustment was lower than goods receipt quantity for example 9 PC, then stock value will be posted proportionally by the goods receipt quantity i.e. : 9 PC * 100 EUR / 10 PC = 90 EUR."

    Kind Regards

    Mohsin Abbasi

    Add a comment
    10|10000 characters needed characters exceeded

    • Former Member

      Hi,

      sorry i am not authorize to read prasoon note

      My question is for Example:

      Material A which subcontractor return us maintained at MAP

      we send the material B to subcontractor which is also maintained at MAP and price is Rs.50 each

      To make one pieces of A subcontractor require a 10 pieces and and subcontracting charges is 30 Rs/pieces.

      so at the time of GR accounting entry would be

      Consumption A/c Dr. 500

      To Stock A/c Cr 500

      External service A/c Dr. 30

      To GR/IR Clearing A/c 30

      Stock A/c Dr. 530

      To Change in Stock 530

      Now if vendor use 1 more qty of component then after posting subsequent adjustment, accounting entry would be, please be note that, no material is consumed meanwhile

      Consumption A/c Dr. 50

      To Stock A/c Cr 50

      My question is here in Balance Sheet your Stock account has been reduced but not increasing on other side due to absence of accounting entry

      Stock A/c Dr. 50

      To Change in Stock 50

      pls guide

  • Posted on Apr 29, 2016 at 11:37 AM

    Dear NITIN,

    It's normal process when you talk about Subcontracting. Please go the link which is mentioned below and read the answer of Syed Hussain in this regard in that link.

    http://scn.sap.com/thread/1344704

    As far as your question regarding same cost is concerned, yes consumption is charged with moving average price of the material at that time, pass entry as accordingly.

    Best Regards

    Mohsin Abbasi

    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Apr 29, 2016 at 12:01 PM

    Dear NITIN,

    One more thing when ever subsequent adjustment is taken place it always trigger two movement type i.e. 121 & 543/544

    I hope you will clear after watching the screen shot.

    Kindly see the screen shot of actual subsequent entries in this regard.

    Kind Regards

    Mohsin Abbasi


    Add a comment
    10|10000 characters needed characters exceeded

  • Posted on Apr 29, 2016 at 02:33 PM

    Hi,

    Refer the KBA: 1702604 - Valuation of subsequent adjustment which explains the system logic.

    Regards,

    AKPT

    Add a comment
    10|10000 characters needed characters exceeded

Before answering

You should only submit an answer when you are proposing a solution to the poster's problem. If you want the poster to clarify the question or provide more information, please leave a comment instead, requesting additional details. When answering, please include specifics, such as step-by-step instructions, context for the solution, and links to useful resources. Also, please make sure that you answer complies with our Rules of Engagement.
You must be Logged in to submit an answer.

Up to 10 attachments (including images) can be used with a maximum of 1.0 MB each and 10.5 MB total.