Subcontracting Scenario

[Former Member]

Hi Friends,

I am sending metal sheet in kgs to a vendor. He will cut into pieces and send back in number of pieces. I have to get back scrap sheets left with him and account it and will be scrapped later. I have BOM for Cut pieces with sheet as child item.

one piece = 0.25 kg in BOM and raise PO for cut pieces.

How to get back scrap and account it. Do we have to add scrap % in BOM ?

Please help

Regards

[former_member202528]

Hi,

Follow the steps,

1. Say i am providing three components A, B & C to get

ASSEMBLY from sub contractor vendor.

2. Create a Material master for Scrap material say D.

3. In BOM, maintain the Material D in negative quantity,

Say A - 1 off, B - 2 off , C - 2 off, D - 1 kg.

4. Now follow the regular process of subcontrating.

5. When you want to inward the scrap material from the

subcontractor end, first receive the material D with the

movement type 545 ( This will make the material available

in material provided to vendor stock ).

6. Then do a GR with 542 movement type to get the scrap

material in to plant stock ( ie reversal of 541- Goods

issue movement type)

BR,

Krishna

[Former Member]

Hi,

scrap should be entered in BOM as -ve qty...

While you recieve the end product(finished) scrap will be accumulated in vendor's place with the movement type 545 O-.

You have to reverse manually using 542 mvt type...

If its accumulation and over accumulation - 545

If cumulated qty is less you can do subsequwnt adjustment using 121 and indirectly 546 gets hit..

Reg,

Deepak.

[Former Member]

Hi Deepak,

Thanks for your input. How to maintain -ve qty in BOM. Do we have to create scrap sheet as a material and attach in BOM alongwith raw material as a child item ?

Please explain in steps.

Regards

[Former Member]

Hi,

You can enter the scrap qty and just enter -ve sign before it..

Just enter it as -1 or -2...

Reg,

Deepak.