Rejection components in shopfloor

Question

Some times it happens that we are clearing  a GRN & giving the material in Shop WIP. But during the production ,some material gets rejected because of supplier's fault. In this case we have to return this material back to supplier through return invoice.
For this purpose we wants separate storage location in which initially we want to transfer the material from shop location to rejection location & while making  return invoice, we will pick up the material from this rejection location.
How can we do this in the system?
Thanks,
Nagesh

Answer 1

Hi,
In the Production process if some material found defective, if you want send the material to Vendor then in Production order components overview, maintain the Components which is defective as negative (byproduct) with qty, Plant & storage location ( Maintain a separate str loc if you want to track & send the defective material to Vendor)
then do the confirmation for the final material. during this system will create the receipt reservation for that production order for that defective material with Mvt type 531 -- Receipt by product from production order.
then in MB26 with respect to the Reciept reservation post the Reseration.
System will update the stock in the Particular str loc, from there you can create the returns PO, do the Goods reciept with Mvt type 161, stock goes off from the system, send the material along with Credit memo.
rgds
GSC