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

Subsequent adjustment

Hi All

Can any one tell me the process of susequent adjustment in the subcontracting step by step.

Whether subsequent adjustment will be done after receiving the finished goods from the subcontractor OR at the time of Invoicing.

Thanks

Vinod

Add a comment
10|10000 characters needed characters exceeded

Related questions

2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Apr 11, 2008 at 11:03 AM

    Hi,

    Subsequent adjustment happens only after GR(Name itself says subsequent to something).

    In Subsequent adjustment we settle the excess or under consumption of materials provided by you to the vendor to create say a parent item.

    After GR in MIGO transaction go to Subsequent adjustment-->enter the PO no., then select the Under/Over consumption indicator(in line item) accordingly & post it.

    Regards,

    D Somaiah

    Edited by: D Somaiah on Apr 11, 2008 4:39 PM

    Add a comment
    10|10000 characters needed characters exceeded

    • Former Member

      Dear Sir

      i send 10 roh material to vendor for making 10 finished products

      but i recived only 9 fert material,he consumed all 10 roh materials for making only 9 fert. i want to do subsequent adjustment.here i want to click the indicator or no need

      please explain to me

      Thanks

      Maruthi

  • Posted on Apr 11, 2008 at 11:10 AM

    The process of giving additional qty to meet the requirement is called subsequent adjustment in subcontracting

    After the subcontractor (as vendor) had delivered the ordered material (end product), you posted the goods receipt to the subcontract order. The system determined the necessary components for each purchase order item and created for each component a goods issue item with the quantity that was determined in the purchase order

    If the vendor informs you after these postings that a greater or smaller quantity of the subcontracting components was actually consumed than planned in the purchase order, you must post a subsequent adjustment to correct the component consumption.

    If the component is a by-product, you must post the corrected by-product receipt (excess receipt) or by-product issue (short receipt).

    "In Simple Words, suppose you have sent xx material 100 kgs to subcontractor for processing of 100 yy component. The subcontractor has produced 95 yy by using 100 kgs of xx. That means he has used 5 kgs excess material. But it was not of his fault. It was done on account of die / mould or some other reason. So you have to post a subsequent adjustment for 5 kgs of xx material and reconcile using J1IFQ for making subcontracting challan complete. Similar case can be understand when subcontractor processes 105 yy using 100 kgs of xx. That means 5 kgs of xx short consumed. These types of adjustment can be known using t-code mb51 and movement type 121."

    G.Ganesh Kumar

    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.