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Former Member

Rice Production Firm - Problem with excess qty in BIN

Hi Experts,

I need help from you ppl. My Client are basically in Production of Rice ( all types of Rice's). Here we have a scenario. Every time we issue for production through rice bin. This machine has average of +/- 2% Tolerance. After successful receipt we close the production order immediately. But due to this tolerance level there will be some excess amount of rice in that BIN. And this excess amount will be known only when we empty the bin. Now how we can use this or map this excess amount of rice in the bin without any impacts in financial(P/L) or inventory aspects.

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5 Answers

  • Dec 07, 2016 at 07:59 AM

    Hi Ravi,

    It all depends on what the firm does with the excess rice. Do they throw it away, or do they incorporate it in the next production order, or do they store it as its own product, or do they return the excess back to storage?

    Regards,

    Johan

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    Former Member
    Dec 07, 2016 at 09:39 AM

    Hi Johan,

    The excess qty will also be packed and stored in inventory. It will also be sold. But this amount of qty will be known to us only after clearing the Bin. But we will close the production order once receipted. This excess will be collected finally and only when clearing the BIN.

    ,

    Hi Johan,

    That excess amount will also be sold. i.e. On clearing the bin we may get 200 or 210 kgs of Rice. We clear the bin and also pack this excess qty and store it in inventory and will make sales later.

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  • Dec 07, 2016 at 09:48 AM

    Hi,

    What type of production order are you using? You can transfer excess rice to other warehouse.

    Thanks

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  • Dec 07, 2016 at 12:31 PM

    Hi Ravi,

    You could create a second production order for the excess.

    Regards,

    Johan

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  • Jan 10, 2017 at 01:40 PM

    As far as I understand there is no need to capture any cost for the excess quantity, so I'm not sure if an additional production order is required. If your request is simply about registering the additional quantity you could use transaction MIGO, e.g. with movement type 501 (=Goods receipt without purchase order into unrestricted stock).

    Regards,
    Alfred

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