Scraping a material form production

[muhamed_faisal]

Dears

during production of a assembly part one product found as scrap , to capture the cost of the job pls see the work i done

While creating a Q3 NOTIFICATION i create a QM order QN01

activity was recorded in KB21N transaction

now we can see the cost report

my dout is that what about the cost of material and operation from were we can see this

any report is available to see the inspection cost as well as thematerial cost and operation cost

Thanks in advamnce

Faisal

[anand_rao3 · Accepted solution]

Dear Faisal,

I think, QM order captures non conformity or appraisal cost which mainly concerns with activity confirmation using CO component. In order to capture material cost, it (the material) must be consumed in system.

I am quoting here 2 different methodologies. Kindly check their feasibility and pertinence for your requirement.

All experts, kindly have your valuable comments on this.

Case 1 - Scrapped material will not be available for selling

1. As per scrapu2019s system definition, whenever you scrap any material, the stock of that material reduces and will no more be available either for recycling it or selling it as scrap.

2. In such scenario again there are 2 options to book this.

a. While confirmation in CO11N you may declare scrap per operation, under scrap field. The material cost gets booked against the production order. Actual cost would be lower that the planned cost. The variance is your rejection cost.

b. In other scenario, you declare production without confirming scrap in CO11N. While carrying out inspection you declare material as scrap. Here, you need to book the scrap against inspection lot under stock posting option in u201CScrapu201D field. In background it performs 553 movement, and scrap gets booked against production order. The variance in production order is your material rejection cost, which includes operation cost also.

Case 2 - You recycle scrapped material or you sell it as scrap against different material code.

1. Create new storage location for u201CIn-House Rejectionu201D say SL01

2. Create new order type in system as u201CSalvage orderu201D

3. You need to do all plant level relevant assignments for this new order type in customizing.

Now material flow should be as follows

1. Production declaration of say 100 PC through 101 / 131 movement.

2. System generates one inspection lot of 100PC against this production order.

3. You post okay quantity to unrestricted use of the same storage location where production GR is done.

4. Not okay quantity should be posted to location SL01 by changing the location against unrestricted stock in QA32 stock posting. As a result of which rejected (materials to be scrapped) will be accumulated in SL01.

5. Create the order without material. The order type should be u201Csalvage orderu201D.

6. Issue your material which you want to scrap to this order by 261 movement. While consuming give storage location as SL01.

7. You may receive another material say u201CXYZu201D as scrap which you want to sell. Here, for example the stock of finished goods reduces in PCs while stock of material u201CXYZu201D increases in KGs.

8. You can sell this thereafter though SD module.

9. The actual cost of this order would be your cost of rejection.

There are many order variance reports. KKBC_ORD, KKO0, KOC4 are few of examples. A good PP or CO consultant can guide you in more details how to view these variances. But this would be possible once you freeze the path through which you book scrap.

Regards,

Anand Rao

[Former Member]

try KOC4

[Former Member]

Your PP & FICO consultant can help you as there is std T codes like J1ID etc are maintained for production cost etc.