Scrap in production line

[former_member416109]

Hi,

Suppose i have process order quantity as 100 but due to 10% assembly scrap the total quantity became 110. When i proceed with the order, how does these 10 extra scrap quantity is calculated in cost. how do i post these 10 extra quantity for scrap movement type.

[former_member271598 · Accepted solution]

Hi Harish,

For assembly scrap, maintain percentage of scrap in MRP View 1 and system calculates the additional requirement  according to the percentage you maintained , and you can post scrap material in MB1A tcode with cost center and GL account with 551 movement type and also refer following thread

for scrap posting and scrap effects.

with regards,

Senthilkumar.S

[former_member416109 · Accepted solution]

suppose if i have 100 order quantity and out of that 10 got scrapped. i do confirmation for 90 as yield and 10 as scrap. but what happens to the scrap material after that. where i can do the posting of this scrap  material ??

[Former Member · Accepted solution]

Hi Harish,

When we maintain this kind of settings that means we assume that it’s a process loss which we cannot be counted in production.

But this will be considered in standard CO Variance Analysis process of the production orders.

Regards,

Amit

[former_member416109 · Accepted solution]

Got it, Thank you for the answer.

[former_member416109]

Thank you R Brahmankar , Senthil Kumar and amit kulkarni for your replies. Really appreciat and i am clear with my conception.

[rupesh_brahmankar3]

Hello,

Please close the discussion if it is answered.

Best Regards,

R.Brahmankar

[rupesh_brahmankar3]

Hello,

There might be some loss during the  production process  is defined as assembly Scrap example if planned to produce a qty of 100 KG we may get around 90 KG as the final output or yield due to some part are scarp during production

Now to get the actual output as the planned one we need to increase the planned qty by some percentage so that we will get the output as per the expectation for this we use assembly Scrap.

For this no good movements as it loses during the production process. And cost would be involed in your finished product during the costing run  as header material and subsequently increases the order quantity for corresponding components

Best Regards,

R.Brahmankar

[former_member416109]

So it means that the scrap ,material cost will be included in total cost of order and no respective document will be posted for the scrap material. But what happens to scrap material, how to we post that material???