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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.



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


    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.


    D Somaiah

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

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    • 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 i want to click the indicator or no need

      please explain to me



  • 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

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