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Scrap Handling

Former Member
0 Kudos

Hi,

Please let me know what are the probable scenrios to handle the Scrap in Production point.

Rergards

Prakash B.

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member
0 Kudos

Hi,

By doing scrap in CO11N, material qty will consume from stock but scrap material you can not see in any where.

Normally in production no one can do scrap.

And also in every company they want to calculate monthly scarp qty.

To achieve the above doing component scrap it will not use.

Follow this method to get rid of your problem.

1. Confirm all the qty as yield qty in CO11N or CO15. ( ok + scrap)

2.Create one separate str location for rejection.

3.Physically you know the how much rejected qty. Move that qty from accepted str location to rejection str location by using MB1B 311 mvt.

4. Now yield qty will reduce.

5. Check in MB51 with mvt type 311 with corresponding period, you came to know how much quantities are rejected.

6.By 551 mvt materials people scrap that rejected qty.

7. In this no need to create any extra material for scrap.

8. No need to change in BOM assigning negative qty.

9.No need to create Byproduct.

Regards,

Dharma

rupesh_brahmankar3
Active Contributor
0 Kudos

Hi,

If you maintain the Scrap in BOM with -ve quantity then that scraped move it to scrap storage location with movement type 551.

Suppose in co11n say for example total quantity is 100 scrap is 20. eneter 80 as final confirmation and 20 as scrap.

If you not maintain the Scrap in BOM that case you can put scrab in CO11N but it will not post to inventory. It just reduce the production Yeild.

Regards,

R.Brahmankar

Former Member
0 Kudos

In production u can handle scrap in three types

1)Assembly scrap: Which u have to maintain in material master.

When u r creating the plan order for 100 quantity of fert, after runing MRP system is creating requirment for 105 quantity if ur assembly scrap 5% in material master.

2) Cmponent scrap : when u update the component scrap 5% in material master after running MRP for fert system is creating the 5% extra requirement for that particular component

3) Operation Scrap : If there is scraping at particular operation u have to maintain the same in BOM item for that particular product then matrial requirements are creating according to the % u have maintianed in BOM item.

Please revert back for any clearification.

Nilesh Ithape

Former Member
0 Kudos

Hi Nilesh,

My Exact scenario is say for example my production order is 100 nos

during confirmation i may put 70 as yield and 30 as scrap.now system should post in the stock 70 as yield and 30 as scrap.So that i will sell this scrap seprately.

Regards

Prakash B.

rupesh_brahmankar3
Active Contributor
0 Kudos

Hi,

For that you maintain the Scrap in BOM with -ve quantity then that scraped we can move to scrap storage location with movement type 551.So that you will be able to sell this scrap seprately.

Hope clear to you.

Regards,

R.brahmankar

Former Member
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hi bramha kumar we can`t sell scrap quantity as yield ,how can we cost separate

rupesh_brahmankar3
Active Contributor
0 Kudos

Hi Sukku,

Then you need to define it as co-product as joint production then you can cost it separately.

Please try and come back if any problem.

Regards,

R.Brahmankar

Former Member
0 Kudos

Hi Brahma Kumar,

I tested the scenario by maitaining bom qty -ve the thing is here

if i am doing GR of 100 nos of my Prod Ord i am getting byproduct additonal quantatity (100 nos) in Inventory that too byproduct goes to RecptReservation Stock.But my Scenarion is like this if my Prod Ord is 100 nos during confirmation i will put yield as 80 nos and 20 nos as scrap so this scrap should go to diff stock and Finished goods inventory stock should show 80 nos Please consider this type scenario and guide me accordingly.

Regards

Prakash B.

csaba_szommer
Active Contributor
0 Kudos

Hi,

If you want to get both the 'yield' (80 pcs) and 'scrap' (20 pcs) under the same part number at the end of the production you have to confirm 100 pcs as yield and handle the 20 pcs manually - whether you scrap it by mvt 551 or move it to blocked stock type or sell it.

The 'crap' field in CO11N means extra consumption of components by mvt 261 that can be reported in COOIS.

By-product sceanrio means that you get the by-product to unrestricted stock with the part number of it, rate is defined in BOM.

There's no standard solution (as I know) to receive 20 % of the confirmed FG into blocked stock and 80 % of FG into unrestricted.

BR

Csaba

rupesh_brahmankar3
Active Contributor
0 Kudos

Hi,

Once you have entered scrap in CO11N material movements are automatically posted in the system. By confirming scrap you are only reducing the balance confirmable qty in the order.

You can post component scrap as byproduct using 531 movement type if u want ot reuse the scrap. Further action is you have confirmed the scrap quantity now you need to post in some storage location either to order or to the GL account of the material. Both are possible from MB1C. Maintain some storage location and post the scrap.

.

This will meet ur requirement.

Regards,

R.Brahmankar

Edited by: R Brahmankar on Aug 5, 2008 11:45 AM

Former Member
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HI Brahmankar,

Thanks for your reply,Please Explain me the cost implication if i go for either of the scenario.

Regards

Prakash B.

Former Member
0 Kudos

Hi,

U have to create ur scrap as one product in semifinish type and assign it in BOM of Finish product with -ve quantity according to ur out put if u r producing 100 quantity and there is 20 quantity is scrap (biproduct) say in BOM accordingly -ve quantity.

now assign that biproduct in ur last operation in routing tick for backflush so at the time of confirmation of last operation system will generate default calculation and it will show in goods movement if there is any diference in quantity u can change it there.

Nilesh Ithape

rupesh_brahmankar3
Active Contributor
0 Kudos

Hi,

If you want separated cost of scrap then you need to define it is as co-product then it possible with joint production costing. Co Product, In turn you need to setup the percentage, of cost sharing.

In case of Co-product costs are settled with a apportionment structure. In case of By-product the price of this by-product is credited to the order or the material stock account of the lead material being manufactured. Co-Product are defined as BOM Components/Items with negative quantities.When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS screen for co-product. You need to define the co-products with this special indicator .

Stock transfer from storage location to storage location (in the plant) is also possible.

Regards,

R.Brahmankar