Component scrap queries

Question

Hi all,
We have maintained component scrap of 10% in the material master.
So if we create 100 PCS of header production order, component qty is 110. 10 pcs of scrap generated is sold outside.
There is a scrap material maintained in system. We want 10 pcs of that scrap generated should be in stock.
How can we get the stock of component scrap when we run the production order cycle.
Please reply.
Ragards,
S Sudhir.

Answer 1

Dear
To address this business process you need to maintain the Scrap in BOM with -ve quantity then that scraped we can move to scrap storage location with movement type 551.So that you will be able to sell this scrap seprately.
Once you have entered scrap in CO11N material movements are automatically posted in the system. By confirming scrap you are only reducing the balance confirmable qty in the order.
You can post component scrap as byproduct using 531 movement type if u want ot reuse the scrap. Further action is you have confirmed the scrap quantity now you need to post in some storage location either to order or to the GL account of the material. Both are possible from MB1C. Maintain some storage location and post the scrap.
By doing scrap in CO11N, material qty will consume from stock but scrap material you can not see in any where.
Normally in production no one can do scrap.
And also in every company they want to calculate monthly scarp qty.
To achieve the above doing component scrap it will not use.
Follow this method to get rid of your problem.
1. Confirm all the qty as yield qty in CO11N or CO15. ( ok + scrap)
2.Create one separate str location for rejection.
3.Physically you know the how much rejected qty. Move that qty from accepted str location to rejection str location by using MB1B 311 mvt.
4. Now yield qty will reduce.
5. Check in MB51 with mvt type 311 with corresponding period, you came to know how much quantities are rejected.
6.By 551 mvt materials people scrap that rejected qty.
7. In this no need to create any extra material for scrap.
8. No need to change in BOM assigning negative qty.
9.No need to create Byproduct.
If you want separated cost of scrap then you need to define it is as co-product then it possible with joint production costing. Co Product, In turn you need to setup the percentage, of cost sharing.
In case of Co-product costs are settled with a apportionment structure. In case of By-product the price of this by-product is credited to the order or the material stock account of the lead material being manufactured. Co-Product are defined as BOM Components/Items with negative quantities.When BOM is created for FERT , you can see one indicator in COMPONENT DETAILS screen for co-product. You need to define the co-products with this special indicator .
Stock transfer from storage location to storage location (in the plant) is also possible.
Hope this will be useful
Regards
JH