Skip to Content
0
Former Member
Dec 07, 2011 at 11:58 AM

Scrap cost generated is more than the raw material cost

64 Views

Dear Gurus. Please help me in this scenario

The conversion cost of the material is lesser than the scrap cost when the material is sent to vendor for any grinding operation, in such cases we need to recover money from vendor.

Eg: Conversion cost is Rs 100 , Scrap generated value is Rs 800. Hence Rs 700 needs to be recovered from vendor.

How to put this in Info record? and how to handle this situation in PO and further process?