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Best way to clear negative stock at subcon vendor

pm_consultants
Explorer
0 Kudos

Hello Experts,

Good day.

Would want to seek your advise on this issue.

We have a subcon PO and user incorrectly update the component qty making the backflushed qty. greater than what was sent out to vendor. Due to this we now have negative qty at subcon vendor. PO is already GRed and IRed. What would be the best way to correct this? We cannot use MB1C to manually add stock in Production.

Appreciate your advise. Thank you!

Accepted Solutions (1)

Accepted Solutions (1)

JL23
Active Contributor
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you do not only have negative stock at the subcontractor you also have a finished good which got too high costs.

As long the invoice is not paid it would be the cleanest way to cancel invoice and goods receipt and do it right then.

On the other hand you have the subsequent adjustment function in MIGO for these cases

Answers (4)

Answers (4)

former_member233510
Active Contributor
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Either you have to transfer 50 quantities from unrestricted stock to Stock provided to Vendor (or) you have to carry out physical inventory in order to remove the negative stock.

If your business is not willing to do transfer posting from unrestricted to stock provided to vendor then you have to go for physical inventory. This won't cause any financial loss since already you have excess 50 quantity in your storage location stock. If you do physical inventory, then the accounting entries will be BSX - 50 Qty - Credit and GBB - INV - 50 Qty - Debit.

BR, Rosh.

pm_consultants
Explorer
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Thanks both for your reply. Problem is the stock is negative. The qty moved to vendor (541) is less than the qty issued (543). So technically I don't have anything to reverse. Business don't want to add any unrestricted stock and send to vendor as the process is already completed. See attached screenshot.

Former Member
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Hello Tomasz,

In vendor sub con stock went to negative , as the user has consumed more stock than the stock provided to the subcon vendor . In this case as the consumption is done with 543 movement type ,please reverse 50 PCE  with 544 movement type  .  This is because with 543 movement type consumption accounting document has been generated , so to reverse it 544 is the correct movement type in this case .

Many Thanks !

Regards

Suvendu

BijayKumarBarik
Active Contributor
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Your present stock is -50PCE for material but stock is available in subcontractor place  only where these stock are valuated at your plant level. So you have go for following

1.Bring back stock with 542 movement type with MB1B( stock will be +50PCS)- I am not sure-why business will not agree

2. Do physical inventory process and upon posting, your posting will be

BSX- 50 Cr

GBB-INV- 50 Dr

If you are not following above- you can charge to vendor for quantity 50PCE material by creating an invoice and let subcontractor pay you for the material value.

kunal_ingale
Active Contributor
0 Kudos

Hello,

when you have a negative stock it must be either consume for additional Finished goods or it is used excess in the finished goods you already have received.in these both cases you need to provide stock to vendor if you have received the finished goods.

You need to check where this stock physically present and accordingly you need to decide if you need to cancel the movement or you need to place the stock in vendor inventory.

in all the cases you need to take decision based on who is going to bare the cost of this goods.

check reply from Bijay for movement of goods.

thanks

kUnal

Former Member
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hi,

Yes you can adjust it by 542 movement..

Regards

Anuj

tomasz_domanski
Contributor
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Hi,

Wouldn't MI10 and doing inventory count for special stock type O Parts provided to Vendor work for you ?

BR,

Tomek

pm_consultants
Explorer
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I was also thinking to perform inventory count and zero out the count but I was thinking if that is okay in Production. Wouldn't it incur financial cost?

BijayKumarBarik
Active Contributor
0 Kudos

Hi,

Can you share screen of MMBE where you can view material stock at subcontractor.

Why you cannot try to back raw material with 542 movement type with MB1B from subcontractor ?

Regards,

Biju K