cancel
Showing results for 
Search instead for 
Did you mean: 

Over Consumption in Subcontracting

Former Member
0 Kudos

The subcontractor is all the time over consuming the material and we are doing adjustment in MB04.

It is decided to cancel the biz with him.

How will be recover the cost of over consumed materials in subcontracting?

Accepted Solutions (0)

Answers (3)

Answers (3)

former_member187989
Active Contributor
0 Kudos

You need to discuss with SC vendor how actual consumption takes place(Set tolerance limits for each & every material),

Also get consumption details for every delivery challan or

else get a monthly stock statement from SC vendor,

how much material is consumed(543),how much parent material is lying with vendor,

how much parent material is completed & sent to you.

Create BOM as per SC Vendor material consumption.

This will resolves problem in subsequent steps.(GR,Challan reconcillation etc.,)

Former Member
0 Kudos

My question was on the settlement of over consumption with the subcontractor with whom I am closing the biz ties.

I need to recover the cost of material from him.

Former Member
0 Kudos

Go to transaction code MB51,

Based on selection criteria , Material , Plant, Movement type and special stock indicator and user , you can find the detail of excess material provided to vendor.

You can use ME2O transaction code for Subcontractor vendor for report.

You may raise a Credit memo through MIRO transaction to vendor to get the value back.

Edited by: sudhansu satapathy on Apr 12, 2010 10:11 AM

Former Member
0 Kudos

I donot think credit memo can be used for this purpose. The invoice verification in subcontracting is of service charges of the subcontract work. we donot pay for our material given to subcontractor.

the material over consumed will not reflect in MIRO.

Former Member
0 Kudos

Hi Geetika,

Trace out quantity consumed in excess by the Vendor, for each Purchase order, (You can use the process mentioned by satapathy).

Then raise a sales order and credit memo against the sales order on the Vendor( as ustomer) with the quantity and the price that to be charged on the Party. and do the settlement.

after settling close the Vendor procurement in Vendor master to stop any further dealing with the vendor.

Hope this solves your problem.

Regards

Former Member
0 Kudos

currently the material is not extended to any sales org.

do i have to now to extend the material sales view?

how then the link between subcontracting process will be connected to sales of over consumed material?

by sales, it will become an independent process, in future if we have to analysis we cannot establish the relationship between over consumed and what made us to sell this material to subcontractor.

Former Member
0 Kudos

I think you can raise credit memo, not an issue, through MIRO transaction , however you can also raise credit memo through Manual FI entry.

Former Member
0 Kudos

I think I need to check with SAP.

I could not find any documentation on this.

once clarified I will close the thread as awarded

Former Member
0 Kudos

Hi

The subcontracting vendor is consuming the extra quantity, so it means that while doing GR you can see the actual consumption of the quantity with the movement type 543. it is anyway recorded. If you need to control this situation, please have a discussion with the subcontracting vendor.

Since you are going to withdraw the business with that vendor, you need not to change anything in the in the system such as BOM .

thanks,

Jana Pokkalla