Production losses tracking in REM environment.

[Former Member]

Hi PP Gurus,

The requirement is to capture Production losses in REM environment. We already know that Scrap field is available in backflush screen but as per our knowledge it is posted to scrap account and it will remain there. But here the losses are like evaporation loss, liquid spilling loss that will directly reduce producing quantity and that will not come for MM module too because all are happening while doing production. Is it possible to track all that using PP module's REM scenario MTS or MTO?

Please reply with your kind suggestion.

Thanks & Regards,

Abu Arbab

[Former Member · Accepted solution]

Dear,

All these looses can be captured if you have IS mill as I know.

In REM the only way is scrap.

But anotherway is book it as a production loss by issuing the product qty to a scrap cost center using 201.

Hence you do the production for full qty and then issue in to cost centre.

[Former Member · Accepted solution]

Hi Rajesha,

Thanks for your valuable input. That is so useful.

But the consumption against scrap cost center will come only if loss should be accounted against that cost center. So we decided to create one logical scrap storage location for SFG through MM and Production guy will back flush whatever quantity he actually consumed for FG production and remaining loss quantity will be diverted to scrap storage location. There from it will be adjusted using some inventory adjustment transaction code MI10. Same will happen for Raw material and FG except storage location creation. Now there are two options either we can do physical inventory adjustment daily using BDC or once in a month/two months manually. We did all that because SFG losses are in process production losses and making valuable impact on costing. Hope this will work.

Thanks & Regards,

Abu Arbab