How to handle wastage in production process of SAP Business One?

[Former Member]

Hi All,

Greetings!

Please give me some advice related to wastage management. We are manufacturing cosmetics item. During production, we received lesser finished good rather than planning, due to wastage of some child items. How do we manage these wastage items in SAP Business One???

Please help me out.

Regards

Anshul.

[Former Member]

Dear Pathak

if you want to manage the waste from the production, i think the best way is to create an item master data for the waste.

at the time you complete the production. at the time you insert the finished good ammount. you should also receive the waste. and put the waste quantity.

this way you can re use the waste for other production, or sell it depends on how you want to manage the waste from the production.

i hope this will help you

[Former Member]

Hi Anshul,

You can mention negative qty for the wastage items in the BOM. While generating the Production order negative qty automatically hit the wastage item with zero value.

Hope it will helpful.

Regards

SP Samy

[Former Member]

HI Samy,

Could you please explain me in detail?  where to define negative qty?

for exam-Parent item P= 2 AND  if i have 2 child items- X = 9. AND Y=10

during issue- we use X=8, Y=9 and we received P=1.

Total wastage items are X=1 AND Y=1.

So how to maintain in BOM and where can I see this in inventory.

Thanx

Anshul

[Former Member]

Hi Anshul,

Please ignore my previous solution. That is wrong it wouldn't suit for you.

Check this link

Thanks

[frank_wang6]

If you just want to track the waste generated during the production, you can create a separate warehouse and in your BOM, you put the waste stuff in that warehouse with a negative quantity.

Then, every time, when you complete a work order, those waste stuff is generated in the extra warehouse as byproducts.

Frank

[frank_wang6]

BTW, byproduct might require SAP B1 9.1

[Former Member]

Dear Frank,

I am working on SAP B1 9.0.

And You are right, I just want to track the waste generated during the production.. Could you please explain me, when should i enter waste entry in BOM?? After Production process or Before production process.

Please explain in details step by step..

Thanks in Advance!

Anshul Pathak

[frank_wang6]

I am not sure 9.0 allows that. But in 9.1, u can do this.

In BOM setup, say parent item is P, two child items X and Y.

The original BOM is like 1P = 10X + 9Y. And you have 2X and 1Y waste generated

So the new BOM will be

X     10     Whs01

Y     9     Whs01

X     -2     Whs02

Y     -1     Whs02

In this case, when u create work order using this BOM, when you complete work order, the system will put 1P in Whs01, deduct 10X from Whs01 as well as 9Y from Whs01, and 2X and 1Y will be generated into Whs02 as byproduct(Where u can treat all stuff in Whs02 are waste).

Frank