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re-using of scrap material

Former Member
0 Kudos

Hi All,

Can any one can send solution for this scenario.

I have product ‘A’ (metal product), I had created a production order for some ‘X’ numbers. While doing the conformation I found ‘Y’ numbers are rejected. I had posted these ‘Y’ numbers as scrap while conformation. Since ‘A’ is metal product so I want to melt the rejected material and reuse it for Product ‘A’.

In this case, can I do transfer posting of scrap from scrap storage location to raw material storage location. Including scrap percentage in BOM and activating recursive allowed and use it to produce ‘A’ product.

If I map the above process in SAP, are there any issues while doing valuation, product costing, Auditing Etc. If there are any issues while mapping the above process, how to handle them in terms of integration with other modules?

Thanks & Regards

Varma

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi Venkat

Yr product is A . Let's say the component for A is c1,c2 etc.

Now when u confirm Product A as scrap, yr material no is A only, So how are you going to draw this scrap to remake product A.......Ok

Instead what u can do is, do the confirmation as rework for y nos. Then create production order w/o material and you can configure the default operations for the production order and settle the expenses to the previous production order after confirmation.

Otherwise u can trigger the production order upon rework or rejection during confirmation. u need to configure the trigger points with routing or standard operation set assignement.

I think ur concerns are addressesd in the above process.

Pls let me know if u need any further help.

regards

Vijay

Former Member
0 Kudos

Hi Vijay,

Product 'A' is metal alloy. so reject material is added to the raw material while doing alloy composite. They are not doing any rework or they are not processing these rejected material separately.

Thanks & Regards

varma

Former Member
0 Kudos

Hi

I'm not getting U R concern

Because yr reject material is nothing but product A, Right!

Pls let me know with the details

reagrds

Vijay

Former Member
0 Kudos

Hi Vijay,

Assume that I am manufacturing engine. To manufacture engine I need aluminum and some other metals. I had prepared an alloy using these metals. After that I did casting for 100 engines using the alloy. After doing some operations at inspection I found 10 engines are defective (Some Damage). So while conformation of the order I had posted it in scrap quantity. Later I had used this scrap quantity along with the BOM items for engine allow.

I think this made you clear.

Now I want to map this in SAP.

Thanks & Regards

Varma

Former Member
0 Kudos

Hi Varma,

There is no standard SAP process for this issue. You can handle it business vise....

you have calculate the loss of re-melting the scrap, i.e if you re-melt 10 pcs, how many new castings can you get out of it. Lets assume 8.

Two SAP solutions:

1. You have to scrap 2 pcs from your order and transfer post 8 pcs back into stock.

2. Scrap 10 pcs to scrap account. Receipt/Issue 8 pcs from scrap account into unrestricted stock account.

I have made a simple calculation, it might need more variables depending on how your accounting department wants their inventory valuated, and how your production department wants to track scrap.

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi Ravi,

I dont have full solution for this querry.I will help you to some extend.

If you manufacture the product A for a specific sales order.The Y numbers and "restricked stock" specific to the sales order.

You cannot use these stock untill and unless you decouple these stock with the sales order.This is possible thru Movement Type:412(Iguess).Then u can use the material for any other sales order which have the same specification thru Mv Type:413E (I Guess).

Coming to integration:the quanity of rejected materials will be deducted in total costs and you have the distribution rule to incur the costs of overheads.

I came across the situtaion in Implementation of Steel plant.

They was an scenario to re use the steel bar which have been rejected based on length.

These short lenth bar were user for other sales order which have the length as rejected stock.

Please correct me if I am wrong.

we have such a great consultants in our Forum to address our queries.

Regards,

Vinodh