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Post Scrap of raw material into Stock

Dears,

I have Raw material issued to production order and become scrap after operation defect

How I can Make GR into stock for this material as I need to Recipe this material into stock to ensure this's material really scraped and maybe rework it again with Rework production order ?

Please Advise

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7 Answers

  • author's profile photo Former Member
    Former Member
    Posted on May 24, 2013 at 10:37 AM

    Dear Rami,

    Using movement 262 wont help b'coz the cost of RM from consumption will be removed. You can use 531 movement to receive RM to a different material code of a by-product. And if it is to be reused it can be issued using 261 or if scrapped it can be converted to a scrap code by the scrapping process.

    Best Regards,

    Pankaj Naik

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  • author's profile photo Former Member
    Former Member
    Posted on May 16, 2013 at 04:36 AM

    Dear Rami Mohamed

    Please clarify your question. You want to make GR of scrapped Raw material or manufactured Goods into stock.

    GR is done for mfg. goods, while for RM you need to reverse RM issue to production order.

    Please detail your question.

    Regards

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  • author's profile photo Former Member
    Former Member
    Posted on May 16, 2013 at 05:22 AM

    Hi,

    Send RM back by MB1A 262 with reference to Order ,post it to scrap sloc(suggesting separate Storage Location for scrap)

    Means that scrap RM qty will get updated in Scrap sloc w.r.t.Prod.Order.

    Get fresh RM qty issued against order to fulfill requirement thru' MB1A 261

    Then confirm & GR the order.

    Revert pls if it works.

    Regards,

    Milind

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    • Hi Rami,

      there are two scenarios:

      Case1: This is generally followed in Manufacturing Industry

      The valuation of defect raw material will be less than the valuation of original raw material, so you should maintain two different codes. From the order you should do GR for defect Raw material as scrap(531 mvmt). Now the price difference should be settled at the closure of the order .Generally the receiver of the price will be stage higher level material which will increase the standard cost of the higher material.

      If further clarification is required please let me know.

      Thanks &Regards,

      Venkata Ravi

      9652139111

  • Posted on May 16, 2013 at 09:25 AM

    Hi Rami,

    Since you have performed the GI, you have to reverse the goods movement using MBST or MB1A with movement type 262 from the production order. Post it to your storage location dedicated for scrap or rework, depends on follow up action you want to perform.

    If you want to scrap it, use transaction MB1A and movement type 551 to perform GI scrap. Post it to the cost center.

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  • Posted on May 16, 2013 at 10:58 AM

    Hi

    Raw material issued to production order and become scrap after operation defect

    if you want to return back the raw material then you have to reverse the raw material in same order and issue additional raw material you used to complete the goods receipt for the output material.

    Regarding operation, if you want to captured the cost of the defect material operation then you have to add the extra time you used in the operations.

    How I can Make GR into stock for this material as I need to Recipe this material into stock to ensure this's material really scraped and maybe rework it again with Rework production order ?

    If after GRN the entire out put or GRN material has to be scrapped then you have to move it to blocked stock or scrap it with respect to order etc

    If you wat to rework this quantity then open rework order and consume this material in the rework order.

    Regards,

    Sharat

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  • author's profile photo Former Member
    Former Member
    Posted on May 16, 2013 at 12:20 PM

    Dear Rami Mohamed

    Please clarify your question. You want to make GR of scrapped Raw material or manufactured Goods into stock.

    GR is done for mfg. goods, while for RM you need to reverse RM issue to production order.

    Please detail your question.

    Regards

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  • Posted on May 16, 2013 at 01:59 PM

    Dear Rami,

    You can reverse the materials with 262 movement type against same production order, once the material comes back to stock, you can transfer post them to blocked stock by 344 MT for analysis / decision purpose.

    Mean while you can issue the OK materials for the production order, and you can continue the production

    Based on you analysis on reversed material, you can scrap them permanently by issuing material from blocked to scrap location by 555 MT (MB1A- T code)

    If you want that material needs to be reworked, you can create the Rework Order through CO07, and assign the material in component overview.

    Please revert

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