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Handling Fixed Line Wastage

Jun 28, 2017 at 07:55 AM

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Former Member

Hi All

In our production process, we have a fixed quantity of waste of raw material regardless of the batch size.For eg if batch is 1000 L you waste 10 L (1%) and if the batch is 5000 L you waste waste 10 L (0.2%).

To map this in SAP, we have added the same raw material as two line items in the BOM. The First line carries the actual component qty required and the second line carries the wastage with "Fixed Qty" Indicator.

This works well during the creation of Process order, but this has a negative effect on standard cost estimate / variance calculations

Kindly let me know on any other way this scenario can be mapped without having costing implications

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4 Answers

Jürgen L
Aug 04, 2017 at 12:10 PM
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Please explain those costing implications that you have in more detail.

Why does it have a negative effect to your standard costs?

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Former Member

Dear Jurgen,

Thanks for your reply

Below is the issue with respect to standard cost estimate..

when the Standard cost estimate is executed for the finished product, the line item which is added in BOM with fixed quantity indicator ( for capturing loss) is multiplying proportionately .

Is this the standard functionality..? If yes , how to overcome this issue.?

Kindly suggest me is there any way to handle fixed line wastages..?

Appreciate your early response.

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Former Member Aug 08, 2017 at 02:34 PM
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Hi All

Any suggestions to resolve this issue

Thanks

Palaniappan

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Former Member Sep 25, 2017 at 07:03 PM
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Hi Experts

An thoughts / suggestions on the same will be helpful

Thanks in advance

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Former Member Oct 01, 2017 at 07:09 PM
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Pl try to make that Fixed Qty Waste as Costing irrelevant.

You can do this in item details.

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