MM / P2Pintermediate

MM Subcontracting Part 3: Stock at Supplier and Reconciliation

Key takeaway

Control your stock at subcontractors: special stock O reporting, component consumption differences (over/under consumption), subsequent adjustments, returning components (542), scrap at supplier, and periodic reconciliation and counts of stock provided to suppliers.

Explanation

📌 KEY POINTS
✅ Stock provided to supplier (O) remains your valuated stock until consumed.
✅ Actual consumption may differ from BOM — correct with subsequent adjustment.
✅ Components can be returned (542) or scrapped at the supplier with proper postings.
✅ Periodic reconciliation (supplier statements, counts) keeps O stock accurate.
⚠️ Uncorrected over-consumption leaves phantom stock at suppliers.

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▶ WHERE WE ARE
Part 2 covered components. Now stock control.

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▶ 1. REPORTING

MBLB stock with suppliers; ME2O overview.

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▶ 2. CONSUMPTION DIFFERENCES

Subsequent adjustment of component consumption for a PO.

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▶ 3. RETURNS AND SCRAP

542 return to own stock; scrap postings at supplier.

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▶ 4. PHYSICAL INVENTORY

PI documents for special stock O; supplier confirmations.

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▶ 5. RECONCILIATION

Monthly comparison with supplier; aging of O stock.

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▶ STEP BY STEP

Review MBLB for a supplier.
Post a subsequent adjustment.
Count stock at supplier.

✅ CHECKPOINT: O stock matches supplier-confirmed quantities.

Code example

ABAP Code

===== STEP 1: reporting =====MBLB stock provided to supplier | ME2O requirements vs stock ===== STEP 2: corrections =====Subsequent adjustment (MIGO/ME2O per release) → additional 543 or reversal542 return components | scrap at supplier with reason ===== STEP 3: counts =====PI document for special stock O → supplier count confirmation → post differences

Real project scenario

Quarter-end showed significant stock at subcontractors that suppliers denied holding. Over-consumption had never been adjusted. Monthly reconciliation with supplier statements and subsequent adjustments reduced phantom O stock by 90%.

Common mistakes

No reconciliation.
Ignoring consumption differences.
Scrap not posted.
No counts at suppliers.
Old stock at inactive suppliers.

Best practices

Reconcile monthly.
Post subsequent adjustments.
Count O stock periodically.
Monitor aging.
Include in supplier agreements.

Interview angle

Questions: "How do you track stock at subcontractors?", "What is subsequent adjustment?", "How do you reconcile?"
Strong answer: special stock O, MBLB, adjustments, 542/scrap, counts and reconciliation.

Practice this lesson

Quick check

1. Which report shows stock provided to suppliers?

2. Quarter-end shows large stock at subcontractors that suppliers deny holding. What is a typical cause?

3. How are components returned from a subcontractor to own stock?

Interview questions

1. Stock provided to subcontractors doesn't match supplier statements. How do you reconcile and control it?

Answer it in your own words first, then compare.

2. A subcontracting vendor's special stock (movement type 541 issued components) shows a large unexplained variance versus the vendor's confirmed consumption at period close, and the GL account for subcontracting consumption is out of balance with the physical component stock at the vendor. How would you architect the root-cause investigation and remediation?