I have requirement like user issues raw meat to a freezing plant for freezing purpose throu using subcontracting process.
While freezing for months there is weight loss to the frozen material which need to handle.
I am planning to handle as scrap material. Please let me know your suggestion whether my approach is correct.
If so how we can valuate that material
Please provide the solution in steps for the above requirement.
1) Use a weight unit like "KG" or "LB" as its base unit.
2) When the weight reduces at the subcontractor, there are 2 ways to srap this material
- Bring back the entire stock and scrap the reduced quantity at your location or
- Scrap the reduced stock at the vendor location using 551 (o) i.e scrap subcontracted stock
Materail loss due to moisture contaioned in it like coal transport or any powder chemical transport,
you can follow below process which are handled material loss due to moisture.
Either Scrap the material it with 551 movemnt type by knowing actual quantrity loss OR do physical Inventory by creating physical document,count result and post the difference( MI01, MI04 and MI07)
But in your case , as you are following subcontract process and sending material meat to vendor,
so stock is with vendor but all stock with vendor are valuated in your plant level, Just receive the material( which is actual quantrity loss & need to be scraped) with MB1B with 542 movement type, so stock back to your plant(company) now & then scrap it with MB1A with 551movement type.
As you deal with food industry, you might think about the funtionality "catch weight management"
If you follow the scrapping process, you also need to identify/create a GL acccount and cost center to incur this loss.
Hello!! we are using CWM, so we have materials where base unit "UNIT" and valuation unit "KG", as materials weight loss, so we need to scrap weight but the units are the same only its weight have been change. However using 551 movement we can´t only register weight, the system requieres quantity for both measurement units.
But we need to make this movement:
Quantity for Base unit: 0 unit
Quantity for Valuation unit: 1 kg
What we can do?
Thanks in advance!!