This flowchart illustrates the standard SAP subcontracting process, emphasizing the subsequent adjustment functionality for component consumption discrepancies. It outlines the steps from initial procurement planning to invoice processing and details the subsequent adjustment process initiated when subcontractors report deviations in component consumption compared to the initial plan.

Definition:

Subcontracting Subsequent Adjustment: In SAP ERP, a subsequent adjustment in subcontracting refers to a correction process initiated after the initial goods receipt of a subcontracted product to reconcile differences in component consumption. This process addresses situations where the subcontractor reports using more or fewer components than originally planned in the Bill of Materials (BOM) for the subcontract order.

Process Steps:

1. Procurement Planning and Purchase Order Creation: The process begins with Forecast/Planned Independent Requirement to determine the demand for the finished product. This initiates the MRP Run (Material Requirements Planning) which generates a Subcontracting Purchase Requisition. The requisition is then converted into a Subcontracting Purchase Order (PO). Finally, the Print Purchase Order step ensures the PO is communicated to the subcontractor.
2. Subcontracting Operations and Material Flow: The Subcontractor Receives the PO and prepares for production. An Outbound Delivery is created for the components that need to be sent to the subcontractor. The warehouse performs Pick, Pack and PGI (Post Goods Issue) for these components. The Materials Received step signifies the arrival of components at the subcontractor’s location. The Subcontractor then Performs External Services & Ship Material Back to Plant, sending the finished goods back to the ordering plant.
3. Goods Receipt, Invoice and Subsequent Adjustment: Upon receiving the finished goods, a Goods Receipt and Putaway is performed in the system. Backflush of Components typically happens during the goods receipt, automatically consuming the components as per the BOM. The Incoming Invoice from the subcontractor is received for the services performed. Create Supplier Invoice is the step to process and pay the subcontractor’s invoice. Post-production, the Excess or Under Consumption of components might be identified by the subcontractor compared to the planned consumption. In case of discrepancies, a Subsequent Adjustment process is triggered to correct the component consumption in the system and align inventory and costs with the actual consumption.