Production Order for Raw Materials

Hello Experts,

We are a Engineering manufacturing company.

We are receiving Steel Plates for manufacturing our semi finished and finished products at Main Stores

We Issue the steel plates to CNC machine for Cutting Purpose.

So We transfer material Main Store to CNC Machine (A Logical Store created in SAP)

Than CNC Technician cut the material and produce the steel plate pieces as per the drawings size and shapes provided to him.

During this process there is process scrap generated which is approx 10% of transferred material.

Please suggest how we can capture this scrap in SAP?

Can we prepare Production Order for Raw Materials and at final confirmation we receive scrap with steel plate pieces.

Or is there any other way to capture this production as well as scrap generation process in SAP.

At present it is GAP in our SAP system

Please suggest solution.

Best Regards,

Vishal Kadia