Scrap Confirmed in Production Order

[Former Member]

Hi,

I have a doubt.

While confirming the production order, the PP fellow confirms scrap say 2 in 100 production order quantity.

Now what happens to this quantity. Where can I track this in Material Quantity.

Further, what happens to the cost relevant to this material. Where does it get posted.

Presently, I am not able to trace the cost related to the scrap.

Please suggest

[Former Member]

Hi!

if scrap( finished product scrap) is given in production order , the scrap cost will be accrued to production order and shown as variance.

For example:

You have planned for 5 finished products and scrap is 2 finished products.

By assuming 5 finished products, you have issued raw material quantity( 1 RM for 1 FP) and activity quantity to be performed.

then Goods rceipt will be : 3 * Rs. 100 = Rs.300

Goods issue will be : 15 Rs 100 = Rs.500

Activity cost : = Rs.50

So your total input cost is: Rs.550

and goods receipt is Rs.300

so Variance will be include extra raw material consumed i.e 2*Rs.100=Rs.200 ( note here i have taken both RM and FP at same cost).

You can see all the details in transaction code : COOIS ( if required you have to change the layout).

regs,

ramesh b