I adjust the neutral switch as follows. Place the transmission [aka gearbox] into neutral with the engine shut down. Remove the switch [if installed]. Insert a small, thin blade screwdriver into the hole for the switch. Move the screwdriver around to verify that the neutral "bump" on the cam plate is centered in the hole. If it's not, play with the shift lever until it is. Insert the neutral switch into the hole. Screw it in until it lightly bottoms out, then back it off 4 turns. Clip the leads of a multi-meter [set to the low ohms setting] onto the leads of the switch. Adjust the switch as needed to get a consistent zero ohm reading when the switch engages the "bump" in the cam plate. Do not screw the switch in further than is needed for consistent zero ohm readings. Tighten the lock nut and repeat the test. Adjust as needed if tightening the lock nut causing intermittent operation. Check gearbox oil level and add as needed.
If the bike has considerable mileage on it, OR the switch was grossly mis-adjusted, it is wise to inspect the bump on the cam plate prior to inserting the neutral switch. A small LED flash light and a mirror will help. I find the style of adjustable, lighted mirror particularly useful. See
https://www.amazon.com/Inspection-T...coding=UTF8&psc=1&refRID=7BRQRYSY7ZW8M43B3ZTN
I have seen the plunger of the switch actually wear a slot into the "bump" on the cam plate. This can play havoc with the switch operation.
Charlie
PS Can someone edit the spelling of the title to this thread. This will help others searching on this subject in the future.