Subcontracting

[Former Member]

Hi all,

I have got a scenarion stated as under,

Ordered a material, M1, to a subcontractor(V1) for quantity 100 pcs. this material has got Materials M2 as BOM and quantity send for above quantity is 100 kg respectively.

But while receiving, it was found that the party has send 110 pcs of M1. Noq I need to make two payment,

1. subcontracting charge for 110 pcs M1

2. Material cost for 10 kg of M2.

Also i need to take this extra 10 kg M2 to my stock & have full stock entry.

How do i map it. Can any one help me out wid this?

Regards

Sushil

[Former Member · Accepted solution]

Hi Sushil,

this can be done is subsequent adjustment in MB04, but one clarification you sent components 100 kg for which you are supposed to receive 100 kg you are getting 110 kg without sending components is it correct.

regards

[Former Member]

hello sushil ,

initialy make payment for 100 , for remaining 10 pcs material and service do subsequent adjustments,

regards

amar

[Former Member]

Hi,

If this is simply a case of the suppkier using more of a component for the same qty of finished product, the next time this happens simply expand the components line on the MIGO screen and change the qty of the components that were consumed to reflect the actual usage.

If you find out about this AFTER you have posted the MIGO then you will need to post a subsequent adjustment and this can be done via MIGO (just choose the "subsequent adjustment" from the drop down list. This is ONLY available after release 4.7 within MIGO) If you ahve an earlier release you can use transaction MB04 to do this.

This will reduce the stock at the subcontractor by the extra 10kg (as long as the stock is sufficient) and the cost of this extra 10kg will be posted to the finished product that was received.

But if the supplier has sent you more of the fincished product (i.e. the item on the PO line) then you can still receive the 110 if you have an overdelivery tolerance set. If you haven't got this set then change the PO to allow the overdelivery by increasing this percentage. DON'T just increase the qty because this will hide the fact that the supplier over delivered.

Steve B

[Former Member]

Hi all,

Thanks to all for your kind suggestions, but this is to bring to your notice that while doing the subsequent adjustment, the component quantity has to be available with the party. Here the party is sending the extra material from his pocket.so i need to pay the amount for extra quantity sent, i.e 10 kgs of material. also this should hit to my stock, i.e stock entry should take place.

Can this be done in one transaction.

[Former Member]

Hi,

If the vendor is supplying any materials "out of their own pocket" then you do NOT manage the stock and conasumption of these items. You have to increase the price to cover the cost of the extra items.

Please do not try to bring anything into stock that you do not provide or pay for directly.

If the PO has alreadty been received then reverse the receipt, increase the price to cover the extra cost and post the GR again.

But if you are receiving an extra qty of the <b>finished item</b> you need to increase the delivery tolerance in the PO and receive the extra 10KG (if you have not sent the extra components then change teh quantity of the components used in MIGO when you do the GR.

Steve B

[Former Member]

Hi Shushil

But how come he sent you more qty, that means he must have extra qty with him against some previous subcontracting PO?

Regards

Yogesh