Scrap posting in Discrete

[Former Member]

Dear all,

Scenario is as below:

I have 3 operations. After confirming 2 operations, i move onto last operation, which has a control key allowing auto GR.

Now, in this case, for the last operation, during confirmation, i enter some quantity as scrap; lets say 100 pcs. So what happens to this 100 pieces??

Does any movement happen? Where does it go? And what would be the material code for that?

Kindly clear the doubt.

Shrenik

[Former Member]

Dear all, i am also curios about this situation. If using by-product as scrap material, then is it possible to use automatic backflush?? Isn't the quantity in BOM is fixed for the main material?? Can explain the detail pls??

[Former Member]

Hi

1) you can have back flush indicator.

When you confirm the operation the particular material will be posted with movement type 531.

What do you mean by automatic back flush?

2) Reg BOM qty:

Since you do not know the exact qty , you can use some dummy qty say "1".

This functionality is a work around.

Regards

YMREDDY

[Former Member]

Dear Reddy

Pls understand that this cannot be done, since this will make the order costing all helter-skelter.... If you give as by-product, then whole costing would change. Cost elements are totally different.

So pls make your funda clear. The way you suggested is principally wrong.

Shrenik

[Former Member]

Hi

Once the material is scrap you cannot use it. Like say if you are manufacturing Crude oil.and if one barrel or drum is dropped or contaminated, you cannot account it to any kind of inventory after you consider it to scrap,

Only the value of this scrap quantity is accounted, when variance is calculated and settled .. Please correct me if I'm wrong.

so finally you will see that in order to make 100 barrels you spent an amount required to make 101 barrels.

If you always know that certain percentage of conponent is going to scrap then you either assign it in the component material master or in bill of material of finished material. that way system will automatically calculate your scrap.

Thanks

[Former Member]

Hi

We can not view any business wrong just because we do not know the same.

SAP has been built to take care of the business processes around the globe.

In that we can build any work arounds depending upon the business process.

Just because we do not know, we can not say that particular principle is wrong.

we should be open for the ideas then only we can learn.

Coming to the present process:

If we want to take scrap as by product we should accordingly built our costing process also.

Normally if we want to take the scrap as by product the cost should be taken as nominal.

The following is the scenarios where we have to stock the scrap also.

In flourescent tube manufacture there is a stage where we have to inject mercury.

By chance after this stage the product gets rejected.

Then that scrap is material of hazardous nature.

Then we have to stock & dispose off to the satisfaction of stutory authorities.

In this case we have to stock the scrap.

The method what I suggested is one of the method pertaining to that scenario.

This I have suggested keeping this in view.

Some body else can implement some other work around as he thinks fit.

I hope it is clear.

The method what I suggested is one of the work around.

Regards

YMREDDY

[Former Member]

Dear,

Let us say you have 1000 pieces. You have confirmed 900 as yield to and 100 to as scrap.

Now all the cost is calculated for 1000 to, but GR is only for 900 To. If you book the scrap in this way it is like a loss. But your operation status will be confirmed.

Hence if you want to post the scrap into inventory then the way out is ---

Define the scrap as a material and declare this as a BY-PRODUCT and you can do the GR for by-product. This can be used in a different production order or the same production order as a unplanned component.

Hence SCRAP what you enter in the operation confirmation is some thing like a loss...but as for as operation is considered as confirmed fully.

please come back if you need any clarification.

[Former Member]

Hi Rajesha,

The scrap i am talking about here is not a by-product. Let me clarify a little bit --

Taking your example -- order quantity is 1000 pcs.

Now, after the last operation, 900 pcs is the yield and 100 pcs is scrap. This is decided by QM. In my case, after every operation there is a quality inspection. So, QM decides whether the produced piece is OK / to be scrapped / to be reworked.

So in this case, QM says that out of the 1000 pcs of finished product produced after the last operation, 100 pcs are totally rejected and hence i am booking it in the scrap field in CO11N. And then i have the problem, that what happens to that scrap? Where does it go??

This is the scenario.

Hope it is clear now,

Shrenik

[Former Member]

Hi Shrenik,

When you do last operation confirmation , confrim all 1000 pcs

the QM will tell how much is scraped or reworked or Good pcs

all scraped pc and rework pc will be posted to Blocked stock

if it is scraped then you can do material to material transfer , means from product scrap to scrap material.

Cheers

Bala

[Former Member]

Hi Shernik,

when u confirm last operation u will confirm 1000 qty at this u don't know the scrap then it will go to quality stock then the quality person will decide how many qty will be scrapped then he will put that qty in blocked stock.

If at the time confirmation if u put 100 qty as scrap then it will not come in the stock anywhere only thing is that ur operation will be final confirmation and the goods will be issued as per 1000 qty so what ever the expenses are there then system will book against 900 qty. so u material cost will be increas.

regards

ramakant

[Former Member]

I am having inprocess quality inspection. Meaning there is inspection after every operation. So there is no need for quality inspection after GR from production order. So, in effect all the yield stock is going to unrestricted use stock only. It wont go to quality inspection stock.

So, at this time, when i book some quantity as scrap, i want to move it to some storage location. How can this be done ?

[Former Member]

Hi

If you want scrap to be posted to inventory, do not give anyinput in scrap column of confirmation screen.

Pl. follow like this:

You create scrap as material code with material type HALB.

add it to BOM as negative qty( some dummy qty & not exact).

Assign this material to last operation in routing.

maintain back flush indicator for this material in routing.

Then when you confirm that operation, you will get this material with movement type 531. There give correct qty.

This solve your problem.

I have used in many places like this.

Pl. do not forget to award.

Regards

YMREDDY

[Former Member]

OK. So what do i do about the original order quantity?

Say, order quantity is 100 pcs. And 50 are to be scrapped. But, as you say, if i maintain it as a byproduct, then i am still left with 100 pieces of the order, to be confirmed??? What should i do with that?

Shrenik

[Former Member]

Hi

Pl. understand that this is a work around.

You have to confirm & make GR for 50 pcs only for Good materials.

Remaining 50 pcs you are scrapping .

This you are getting as by product..

Regards

YMREDDY

[Former Member]

Dear,

Please try to understand...what you eneterd in CO11n as a scrap will not be accounted in SAP as a inventory material. SCRAP means it is a loss from production that is it.

Once you enter this qty, you can see in the operation overview as confirmed scrap qty. You cannot seee in inventtory.

If you want to see this in inventory as I sugesetd you before you need to treat it as a by product.

After reaching the last operation if QM finalise that 100 pieces are rejected, then

if you enter this qty in CO11n, as scrap system register this qty as confirmed scrap and close the order.

If you want to treat it as a by-product and take it into inventory then confirm the order with 900 pieces and final confirmation tick and 100 to post it as by product with mov type 531.

These are the only 2 ways you can handle, there is no other option for scrap.

Please come back if you need more explanation.