return of scrap from vendor Sub contracting

[Former Member]

Dear gurus

Pls advice me on how to map this scenario

we are sending two raw materials to subcontractor for a semi finished product. during the process scrap is also generated which is of value to the organization and they need to receive it from the sub contractor.

now hot to work on this scenario

your valuable advice is greatly appreciated

regards

John

[Former Member]

Hi,

Just treat Scrap as bi product and follow bi product concept.

Thanks

suresh

[Former Member]

Hi Diwakar,

If the scrap recd. is less than expected then how to account this in reconcillation.

Regards,

Mahendra Sane

[Former Member]

u can do adjustment by subesequent adjustment by using t code MB04

pl reward

guru

[Former Member]

Hi,

create a material master record for the scrap material. Maintain the scrap material with a negative quantity either in the BOM or in the material components while creating the subcontracting PO.

Post the components to Vendor's stock with movement type 541. Later send the materials to vendor physically. While receiving the materials (Goods Receipt) w.r.t.the sub contracting PO with MT 101, the following postings happen,

components will be posted with movement type 543 ( - ) and the scrap with MT 545 'O' (stock category) [MT 545 - material lying at Vendor's location]. Later u can take back this scrap material from the vendor with movement type 542. This is the complete procedure in terms of goods movements.

Don't forget to Reward, if found useful.

Regards,

Varma

[former_member218067]

Hi John,

Please create a new aterial code for scrap nd assign this Material as component

in either BOM or while assigning componenets in subcontracting po with <b>negative

sign</b> for Qty.that will be generated as scrap

Hope this will help

BR

Diwakar

reward if useful

[Former Member]

hi

u maintain scrap qtys at the time of BOM cretion itself for semi finished material.

when ur receiving semifin mat with 101 syst automatically will do

1. with 543 consumption of Raw mat from subcontract vendor

2. with 545 scrap will be handle .

u check it out

& assign points

nani