on 11-06-2017 6:35 AM
Hi Experts,
My client have required to handle Raw material wastage in Production. They have one finished product (A) & one Raw Material (B). Raw material (B) is a child material for Finished Product (A) in Bills of material. 100 PC Raw material (B) is required for 150 PC Finished Product (A) production. But there is 2% wastage of Raw Material (B) for Finished Product (A) production. It's means 102 PC Raw material (B) consumed for 150 PC Finished Product (A) Production.
How to maintain the same in Production? They run MRP & Product Costing.
Please suggest me. It is very very urgent requirement.
Thanks & Regards,
Biplab Malakar
Hello
Please maintain 2 % of component(B) scrap in either material master or BOM depends upon your process.If you maintain in material master (MRP 4 view) where ever the component B is used 2 % will be planned additionally.If you maintain in BOM Item level,It will be planned additionally when BOM header product is planned.
Regards,
Velmurugan S
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Hi,
But how to identify the quantity & value of wastage separately. I have already done this process but only quantity & cost is increasing of Raw material (B). How to identify how much quantity & cost is wastage of Raw material (B) for production of Finished Product (A).
Please suggest me. It is very very urgent.
Regards,
Biplab Malakar
Hi,
First I have maintained component scrap percentage for Raw Material(B) 2% in Bills of Material of Finished Product (A). 100 PC Raw material (B) is required for 150 PC Finished Product (A) production. But there is 2% wastage of Raw Material (B) for Finished Product (A) production. It's means 102 PC Raw material (B) consumed for 150 PC Finished Product (A) Production. Raw Material Price is Rs.10 per PC.
1) Create a Production Order for Finished Product (A) of 300 PC
2) Raw Material (B) has consumed of 204 PC with wastage(2%)
3) Cost of Raw Material (B) is coming Rs. 2040.
My client want 200 PC Raw material (B) should be consumed & 4 PC should be wastage in that production order also cost for Raw Material (B) should be Rs. 2000 & wastage Rs. 40 in that Production Order.
How it is possible? Please Suggest. It is very very urgent requirement.
Regards,
Biplab Malakar
Hello
As Best practice also as per your process all 204 of raw material must be consumed and wastage will be drawn as by-product(Movement type 531).Because after wastage cost of the wastage is not same as rawmaterial cost.
Raw material cost = 204 PC * 10 = 2040
By-Product cost = 4 PC or KG * By-Product price
Pre-requisite:
Add this by-product in BOM with negative sign.
Hi,
My scenario is as below:
Material
Finished Product - A
Raw Material - B
BOM
Header
Finished Product - A
Base Qty - 150 Pc
Item
Raw Material - B
Qty - 100 Pc
Component Scrap - 2%.
Production Order
Header
Finished Product - A
Qty - 300 Pc
Component Overview
Raw Material - B
Qty - 204 Pc
Confirmation
Finished Product A - 300 Pc received by Movement Type 101
Raw Material B - 204 Pc Issue by Movement Type 261.
Rate
Raw Material B - Rs.10 Per Pc
Costing Analysis
Production Cost
Finished Product A - Rs.2040
Raw Material Cost
Raw Material B - Rs.2040.
But Client required the scenario as below:
Production Order
Header
Finished Product - A
Qty - 300 Pc
Component Overview
Raw Material - B
Qty - 200 Pc
Wastage
Raw Material - B
Qty - 4 Pc
Confirmation
Finished Product A - 300 Pc received by Movement Type 101
Raw Material B - 200 Pc Issue by Movement Type 261.
Wastage
Raw Material B - 4 Pc Issue by Movement Type 261
Rate
Raw Material B - Rs.10 Per Pc
Costing Analysis
Production Cost
Finished Product A - Rs.2040
Raw Material Cost
Raw Material B - Rs.2000.
Wastage
Raw Material B - Rs.40.
Please Suggest how to develop above scenario in SAP.
It is very very urgent.
Regards,
Biplab Malakar
Hello
You mention that client is recording wastage as:
Wastage
Raw Material B - 4 Pc Issue by Movement Type 261
Do you means you are consuming(GI) 4 PCs of raw materials separately? Wastage is something come out from the production process how this will be Inventoried? .You are consuming additionally 4 PCs of raw material which become wastage or scrap.This wastage cost will be not same as raw material cost.
Your BOM structure must be :
FG Base quanity (150 PCs)
---- Rawmaterial 100 PCs with 2% comp. scrap
---- Wastage (- 2 PC) (or equivalent;ent weight) (Negative sign)
Regards,
Velmurugan S
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