HANDLING SCRAP FROM PRODUCTION

[Former Member]

Dear All,

How we handle the scrap in inventory from production , my scnario is.

finish good + scrap = raw material1 + raw material2

how we handle this equation in production,and how we construct the bom.

plz give me solution.

[Former Member · Accepted solution]

Scrap Items Management

During the process of production, some of the items are generated, which are termed as Scrap

Solution :

Scrap will be defined with negative quantity in bill of material.

It is the system logic that Scrap cannot be managed by serial numbers or batch numbers.. To convert the Scrap stock into batches, use Goods Issue and Goods Receipt function

Issue method for Scrap should be backflush

Note:

SAP Business One does not consider the child items 'calcprice' in the calculation of the Parent item 'calcprice' when creating a Production Order for a BOM which contains one or more components (Child Items) with negative base quantity. Note! This calculation also affects the Actual Product Value and Actual Components Value fields in Production Order.

So, Scrap do not affect the cost of the product, and they are received to stock with their current cost. The production/finished product cost will show the cost of total component issued to production.

Production/Finished product cost = sum of component item costs

Note:

Scrap item cost is not reduced from the total production cost/ finished product cost.

[Former Member · Accepted solution]

Is there any way to get the FG cost as RM cost - Scrap cost

[former_member187989]

hi ranjan,

When scrap is from finished product,while doing receipt from production of finished product,do actual

receipt quantity in type completed,receipt scrap quantity in type rejected also receipt stock in seperate

rejected warehouse.

Jeyakanthan

[former_member583013]

Ashish,

In Business One (out of the box) any scrap / bi-product from a production process has to be defined as an Item in the Original BOM.

So in your case, the BOM will consists of all the 3 items. The only difference being, the quantity of the scrap item, you will enter as a negative number in the BOM definition

BOM

-

---

RM1

RM2

Scrap

[former_member187989]

ashish,

Whether you are treating scrap as inventory item on production ?

Jeyakanthan

[Former Member]

there is no scrap item in inventory yet now ..

Suggest what to do ..?