Scrapping through subcontracting

hi sap gurus,
one scenario,
suppose one company sends the Raw cyilderical block material to the subcontracting vendor and after couple of days we he sends us a finished goods with scrapping of 40 % material. then any body let me know how t o slove this issue.
upto now so far
i create a mmr where i have assigned the componenet of scrapp percantage is 40% in mrp views, but when i create me21n for that material, it showing that scrapp percantage is 0%. why so like that
plzzzzzz

HI,
You will have to define the BOM in which u can defeine the materials for scrap.BOM is defined in CS01.
Else when u raise the PO with L' item category you can define the scrap generated in the Item details in the components tab.
Then when the MIGO is done the scrap shall be considered. Else if BOM is defined automatically the net Qty will be send excluding the scrap.
You dont define the scrap Qty in the MMR.
Hope this helps.
Regards,
Prasanna
Award pls if helpful.

Similar Messages

Regarding Scrap through Subcontracting

hi Sapgurus,
i have done the scenario of Subcontracting with Scrapping,
from the P.O. to MIGO. evryting is correct.
but the system doesnot ask for storage location the MIGO screen while receiving.
and when i did , the system save the document.
but when i went to MMBE, i am not able to see any update quantity of teh scrapp quanity.

Hi
Storage location is generally not asked if your PO is account assigned PO.
I would suggest you to goto transaction MB5B and check the various movement types for that material in a particular plant.
This will give you the fair idea whether your GR is done properly or not.
In case of PM order GR quantity is settled on PM order directly. It doesn't appear in MMBE.
Regards
Karan

Scrap in Subcontracting

Hi all
can some one tell me
How is scrap accounted in subcontracting ?
regards
Bhushan.N

By-Products in Subcontracting (Scrap)
You can use subcontract orders to plan the receipt of by-products from subcontracting:
Similiar to production order processing, by-products are entered in the subcontract order as components with negative quantity.
In the provision of the components (with reference to the purchase order, for example), the system ignores the negative component items.
In the goods receipt for the purchase order, the system automatically posts the receipt of the by-products. In the material document, you can identify the by-product items from their movement type 544. Note that the by-products are posted to the "stock of material provided to vendor" (also referred to as "subcontracting stock").
The receipt can still be corrected using the Subsequent Adjustment function.
Due to the receipt of the by-products, the value of the manufactured material is reduced.
To transfer the by-products quantities from the "stock of material provided to vendor" (or subcontracting stock) to the unrestricted-use stock, you enter a transfer posting using movement type 542 (reversal of the provision of the components).
Regards
Biswajit

Assembly scraps for subcontracting

Dear gurus,
I would that MRP consider assembly scrap (%) present in material master data to calculate planed order quantity of components of materials procuremented by subcontracting.
Is it possible?
Thanks in advance.
Best regards.
Juan

Dears all,
this the answer of Sap:
Assembly scrap is only used when the assembly is In House.
That is, when the material is produced internally.
I regret this can´t be changed.
If you want to increase the components qty you have to use the
'component scrap' field iin the BOM item.
In fact you have to do for all the items of the BOM,
unfortunately CS20 is not useful for this update.
I regret I can´t provide any other workaround, the
desired field can´t be check in external procurement.
However thanks for your help.
Sys,
Juan

Scrapping through QM module vs Inspection Stock

Hi all,
I've got the following situation and wondered why it would behave differently.
When doing a production backflush with a material set up for Quality Management, an inspection lot is created when the backflush is posted. Now when I do the UD on the inspection lot, and want to scrap some of the goods, I get an error stating that the order cannot carry revenues (error KO 14:Order 701804 cannot carry revenues.). I also tried specifying a cost center and this did not work as well - same error.
This is fine, because this order is a normal cost collector and must not carry revenues.
Now, when I take the same material, change the QM view on the master (deactivate the QM module) so that the stock goes to normal inspection stock and do a backflush (using the same cost collector) my stock will go to IM quality stocks without an inspection lot. This is correct.
Should I now want to scrap some or all of this inspection stock (with migo movement 553), I DO NOT get the error message as mentioned above (and I used the same cost center as above).
Nothing else changed - only now I'm not taking my stock through QM.
Why can I do scrapping from inpsection stock through migo, but cannot do scrapping from the QM module? The movement type is the same & the cost center is the same.
Kind regards,
Hein

Hello Atul,
You can display Inspection Lot from Maintenance Order (IW32/33) by clicking on Environment --> Display Insp Lot. System will take you to Inspection Lot in display mode.
But if you're saying system is NOT displaying any insp lot that means an inspection lot is NOT created for that order.
Check SPRO if you've assigned Inspection Type-14 to correct Plant & Maintenance Order Type.
Path: SPRO --> QM --> Quality Inspection --> Insp Lot Creation --> Define Insp for PM.
Revert if any further issue.
Regards,
Anup

By-product subcontracting process

what is the By-Product process in subcontracting,please explain whole process with tcode and movement type?? .which is t-code and movement tpe we supply the assemble goods and which is movement type we consume it ad what are the the process we receive the component please explain in detail.

Dear Friend,
While creating the purchase order in components you can maintain the by product what your getting from the subcontractor in
negative value (you has to define new material for by products),
this scenario will be help full when by product will be getting back to your premises when you receive finished material from vendor it will be received by 101, consume the raw material by 543, and receive the by product by 545 movement type
if your not receiving back that material at the time use 551 O for sending the material to the scrap for subcontract material
Regards
Pramod

Differentiating subcontracting & purchasing Quantities and Amounts in LIS

Dear MM GURUs
My client is procuring material from one vendor. He is also procuring the same material from the same vendor through subcontracting. When he is doing analysis for the vendor using LIS reports like MCE3, he could not differentiate the qty procured directly w/o subcontracting and qty procured through subcontracting. Is there any way to do this? Please suggest.
I appreciate quick answer.
Thanks
Ravi D

Dear All
I found one option for this. Under Switch Drilldown in MCE3 with my customised infostructure S912, there is an option to drilldown by Info Record Category. This is giving analysis by Info record type Standard/Subcontracting.
I am closing this thread.
Thanks
Ravi

Conversion of FG into Scrap

Dear All,
Conversion of FG into Scrap.
one step process (mvt. type 309)
Accounting entry
scrap inventory a/c dr
gain /loss on scrapping a/c dr.
To, FG inventory a/c cr.
two step process
scrapping through 551 movt type -
gain/loss on scrapping a/c dr.
To, FG inventory a/c cr.
generating scrap 902 movt. type (customized) -
scrap inventory a/c dr
to gain/loss on scrapping cr.
my question is our client is following two step proces is it correct. moreover gl getting hit is price difference instead of loss on scrapping. what is the correct scenario and which movement type should be involved.
Regards,
Divraj

Hi Divraj,
We follow the first step and i personally feel that this is the best method of scrapping of Finish Good.
As the difference between the cost of FG and Scrap is going in Gain and Loss Account. IT IS NOT A PRICE DIFFERENCE.
Regards,
Shayam

Subcontracting PO for account assignment M & E

Need Urgent help....
Dear Gurus,
Require your expertise for the following senario:-
While running MRP for MTO sale order , The planned orders created with account assignment category M.
We do have one Planned order for Subcontracting as well and is created with Account assignment category M and Item Category L .
The combination of M & L is alreday defined in SPRO .
Now while creating PO with M & L for subcontracting , its creates subcontracting PO for sales order reference .
After creating PO , there is no requirements gte generated for trasferring componenets to sub-contacting Vendor , as the components also shows special stock indicator E,
And even after transferring Componenets to Vendor manually through MType- 541, while doinh GR against PO ....the Consumption of components is shown with 543-E , and not 543-O.....and which in turn...doesn't really complete the subcontracting cycle......
So....Combination of M & L is possible or not and if yes what settings need to be done and where ?
Will appreciate your advise
Thanks & Regards
Ashwin Jain

Dear Baskaran,
Thanks a lot for your update ...The senario is like this :-
The sales order is for Finish goods as MTO and under this Finish good in BOM we have one Semi Finish item which we are getting processed through subcontracting.
And under the semi finish we have one raw material which is acting as component for Semi finish item.
The Account assignment category is "M" and Item Category is "L"
The PO for Semifinish Subcontracting is having reference of sales Order and the components for this semi finish is also having the reference of same sales order .
Now while doing GR components gets consumed from sale order stock from our own stock ....and not from Stcok provided to vendor....Actually after creating PO with M & L it doesn't creates any requirements for Transferring components to Subcontracting Vendor ....and in this case how can we trace the Subcontracting Process.
As you said threre is no need to send components to Subcontracting Vendor if PO & Components are having the same Sales order no reference ....Need more clarification on this and then in this case how we will trace the cycle as we r not sending any componenets to Vendor through system but in Actual we need to send the componenets to Vendor to convert them in to Semi Finish Goods .....
Please advise at your earliest ...
Regards
Ashwin Jain

By product and scrap in SC?

hi
SOme body explain me about the difference between the byproduct and scrap in subcontracting process.
In which kind scenario these both will come in SC process.
Thanks

in SAP point of view of both are same .
But business process point of view it diiffers according to the industries
By product:
To make material A , we have to process material C and D . Apart from A , we get the by product E ,which woud be used for other purpose .
eg:Chemical ,pharmaceutical industries
To make SOAP we have to mix Oil and soda . along with soap ,we gets glycerine as a byproduct.
Scrap:
This is mainly in mechanical industries.
For when you make bolt,you will get some scrap ,this you can sell it.
SAP point of view
1.if the scrap/by product known in advance ,it should me maintained as negative in the BOM
2. if you want to maintain inventory for that scrap/by product ,use appropriate material type like ROH
3. if it is non-valuated/non-stock ,maintain it accordingly in the BOM
Inventory movement
1.Move type 545 O used by the system to generate scrap/by prodect and it is still *stock of material provided to vendor *
2. To get into our plant use move type 542.
3.Under consumption means in scrap ,it is over generated than in the BOM .system uses mov type 545 O +
4.over consumption means ,it is less generated compared to BOM qty,system uses move type 546 O -
hope it clarifies

While retire asset by scrapping -Unplanned depreciation positive in area 03

I am trying to retire assets by scrapping through ABAVN but getting error message - Unplanned depreciation positive in area 03.
Please help.

Hi,
Try following workaround to avoid error message AA638 : Depreciation -> Unplanned depr. -> define deprec. area (OABU)
Select the concerned deprec. areas and verify that the flag 'all values allowed' is selected.
When you set this indicator, this depreciation area allows unplanned depreciation with positive as well as negative values.
Regards,
Brigitte

How to capture cost of Inhouse Production Scrap to the Product?

We follow REM Backflushing to carry out goods issue,goods receipt and actual activities capture .
If I do Assembly scrap,component scrap or Activity Scrap through MFBF.How can I differentiate the consumption or Activity booked account of scrapping in Product Cost collector.My requirement is clear demarcation of how much quantity of material A is consumed for good Finished products and how much quantity consumed for scrapped or Bad Finished Product
At the time of scrapping ,Production Persons are not able to relate to the Finished Product?
What is the process followed universally to handle In process Rejections or Process Scrap?
Expecting the reply as early as possible
Regards,
N.Prem Nivas

[http://help.sap.com/saphelp_erp60_sp/helpdata/en/5f/1faba54aee11d189740000e8322d00/frameset.htm]

Scrap Report

Hello All,
Is there a screen where I can view all items htat have been scrapped through a certain time frame.
Would also be helpful to view storage locations, reasons and cost.
Regards,
Chris

Hi Sir
For getting the scrap report , please go to the transactio Co26,select the profile as"000000000001"and select the range of the production order.Run the programme and again go to Object , select the componenet and explode it.Then go to the fileds and change the alyout as per ypours requirement
Thx
Bhupendra Singh

About subcontracting

how to define scrap in subcontracting with accounting effect and registers?

Hi,
Create a separate material number for scrap and maintain as negative qty.in BOM
or assign as negative in component assignment while po
It will update all accounting entries
BR
Diwakar

Different production Version in subcontraction process

Dear SAP Experts,
We have created two different scheduling agreements for manufacturing of same Finished goods, plant & vendor through subcontracting using two different BOM activated through different production Versions with different set of components, But the system is picking up the Version available in the current Inforecords for both the agreements.
Kindly advise whether, any functionality available for picking up the right version designated for each scheduling agreement.
Regards

Dear Ravinder Kumar,
1.In case if you want to split the requirement's equally for 2 different sources say 2 different production versions you can
maintain the quota in MEQ1 for the % for 2 different production version.
2.Normally the system picksup the production version which is assigned in the Purchase Info Record in ME11 for sub-
contracting type.
3.Production version can be controlled by lot size and validity date.Normally the first production version will be picked by the
system in case if both the production version falls under same validity date and lot size.You can use the option of locking the
production version and to check the results.
4.Check this link to explore more,
http://help.sap.com/saphelperp60_sp/helpdata/EN/b2/fa1ed4d51d11d1a69e0000e83235d4/content.htm_
Regards
Mangalraj.S

Scrapping through subcontracting

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