Subsequent Adjustment in Sub-Contracting

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Subsequent Adjustment: 

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.

We can do Subsequent Adjustment in two Scenarios:

• Under consumption 

• Over Consumption 

Under Consumption: 

We send the components to the vendor to make the finished product. After the completion of all the postings, if there are any components at the vendor. The Vendor informs the customer to collect the components, In that scenario we can do Subsequent Adjustment.

Over Consumption: 

We send the components to the vendor to make the finished product. After the completion of all the postings, if there is any shortage in the components as per planned in the Purchase order. The Vendor informs the customer to send the components, In that scenario we can do Subsequent Adjustment. 

Configuration Steps:

1. Create the Material Master (Raw Materials and Finished Material). 


2. Create Business partner.


3. Create the Purchase info Record (With info category Sub-Contracting).


4. Create the Bill of Material.


5. Create the Purchase Requisition with item Category “L”. 


6. Create the Purchase order with reference to Purchase Requisition or Manually create the PO by Maintaining Item Category “L”. 


7. Monitoring the Sub-Contracting stock in (ME2O) T-code.


8. We can Transfer the stock to vendor in (ME2O, MB1B and MIGO) T-codes.


9. Post GR with respect to PO.

Create Raw material with (T-Code: MM01)

             Enter industry sector and material type. 

                                    Select required views. 

                                  Enter Org levels. 

Maintain required fields like, Basic unit of measure, Material group, purchasing group, Valuation class and price. 

Material created under the numbers 6000125, 6000126. 

Created Finished Material.

Material created under the number 13000053. 

Create Business Partner: (T-Code: BP) 

Click on Organization. 

Maintain BP role (000000) and Grouping. 

Enter Company name and address details and click on save. 

Same screen enter the BP role (FLVN00) and click on company code maintain company code and reconciliation account and save. 

And again, same screen change bp role (FLVN01) and click on Pur Org maintain Pur org and currency and save. 

BP was created under the number 90074. 

Create the Purchase Info Record in (ME11): 

Maintain required fields Planned Delivery Time, standard qty and Net price etc,. 

Purchasing info record 25 Created. 

 Create Bill of Material:(CS01) 

Maintain raw materials.

• In S/4 Hana it is mandatory to maintain Production Version to trigger the components in PR And PO.


• If we cannot maintain production version the system throws an erro in PR or PO.


• No Suitable components for this Item.

We can maintain Production Version in two Ways: 

• In Transaction Code C223 (For this we can maintain Routing and Workcenter) 


• In Transaction Code SE38 (Enter Program CS_BOM_PRODVER_MIGRATION and click on the Execute button).

Here i am using SE38 T-code.

Enter the Material and Plant and select Migration Entire Database and Run in Actual Mode and click on the Execute button. 

Select the line item and click on Approve all.

 

Create the Purchase Requisition: (ME51N) T-code.

Enter Item Category “L” then system assumes that the process is for the sub-contracting. Enter the Required Data. 

In the Item Detail level 

Click on the Material Data field Tab and click on the components/Explode BOM (Bill of Material) Check whether the components automatically triggered or not. By checking all the data click on the Save button. 

Purchase requisition number 0000000061 created. 

 Create the Purchase order with reference to PR: (ME21N) 

Select doc. type and enter PR number click on enter, details will be copied.

Check onn components and click on save.

PO created under the number 4000046. 

 Monitor the Sub-Contracting stock in (ME2O): 

Enter supplier and plant click on execute. 

The stock was created

Now Transfer the stock to vendor, we can Transfer the stock to vendor  

• In ME2O itself 


• In MIGO Transfer Posting w.r.t PO with 541 movement type.


• In MB1B Transfer Posting w.r.t PO with 541 movement type.

Select the components which transfer to the vendor and click on the post Goods Issue tab.  

Now check the components/stock updated or not at Vendor premises (I.e., Sub-contract stock) in MBLB. 

Goods Receipt w.r.t PO: 

After checking all the data click on the post button. 

Material document 130 posted. 

The Accounting Entities are: 

Up to here, it is the normal process flow for Sub-contracting. 

After all the postings, Now checks for the remaining materials which are over/under consumed by the vendor. 

Under Consumption: 

The vendor informs the customer if any components are excess than the planned Purchase order in that scenario we can do Under consumption. 

For example: As per our scenario vendor used only 90 kg of thread, Now checks how to post for remaining 10kg of thread and how to take back from vendor.  

• For Finished Material (Movement Type – 121 (GR subsequent Adjustment) 


• Subsequent Adjustment with respect to PO (For Components Movement Type – 544-O) 


• Transfer Posting w.r.t others (Movement Type - 542)  

After checking the data click on the save button. 

Material document 5000000375 posted. 

The Accounting Entities are: 

Now check the stock in MMBE 

Here the stock (10) is provided to the vendor. 

Now we have to nullify the stock for that we can do  

Transfer Posting w.r.t others in MIGO (Select the Movement Type 542) 

By Maintaining all the data click on the save button. 

Material document 400000425 posted. 

Now again check the stock overview in MMBE. The stock will be added into the warehouse stock (I.e., In Unrestricted Use). 

 Over Consumption: 

The vendor informs the customer if any components are short than the planned Purchase order in that scenario we can do Over consumption. 

• Transfer Posting w.r.t Other (Movement Type 541) 


• Subsequent Adjustment with respect to PO (For Components Movement Type – 543 – O) 

Material document 400000426 posted. 

 Now check the stock in MMBE 

Now we have to Nullify the stock. Subsequent Adjustment w.r.t PO. 

 Material document 5000000376 posted. 

 The Accounting Entities are: 

Now again check the stock in MMBE. The stock is issued to the vendor. 

 

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