re-using of scrap material

[Former Member]

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

[Former Member]

Hi,

in similar situations the following process has been used and works well.

The BOM of the finished material contains an addition item, the scrap material (a new material master or the existing one if you have one for scrap metal).

The qty specified for the "scrap" material on the BOM is set to a NEGATIVE figure equal to the amount of scrap you expect to have. this si then passed on to the production order.

When processing the Goods Issues to the production order (by quoting the PP order number or by using confirmations) you will be presented with a figure for the estimated scrap. Adjust this to what actually happened and you will have posted a GR for the scrap item. then you can use this stock in another PP order (via a BOM if you have one) to produce further products (by melting the scrap and producing a raw material (steel?).

This is just one way to do it and a lot depends on what material masters you are using for scrap steel (that can be melted and re-used) and one for the reconstituted steel?

Steve B

[Former Member]

Teh moment u transfer the scrap to raw material it will be valuated if your raw material is valuated.....once u use this mateiral there will be subsequent effect on the valuation product costing etc.

now the moment u scrap it will be out of the sap system right even though it physically available..now u have to take back into sap, in this case the way u take materialback in to sap..the valuation, product costing all depends on that.

now rejection of mateial and scarp is two diff process and diff impact on valuation