Subcontracting Issue with scrap

Hi,
Can you please give your inputs on this issue related to Subcontracting Scrap recovery process.
1. The movement specified does not indicate how the material is being Costed (545 MVMT Type)
You have to create a separate material for scrap with material type ZSCR and through that you have to do the costing.
2. The scrap is being generated at vendors end and is brought only at Month end not at the end of every consignment.
There is no other solution for this and the scrap will be updated through MVMT type 545 when you post the GR document otherwise you have to post the GR at the month end.
3. If standards are defined for scrap - how do we account the Recoverable scrap and non recoverable scrap? Also how the same has to be costed at month end?
4. Incase of under /overrecovery of scrap ..? how do we account them?
Thanks,
Kiran Bodla

Hi
In SAP, If you say scrap the material will evaporate from stock. You cannot track how many KG of scrap generated. So Some clients, users create a material code called scrap and maintain that in BOM with -ve qty.
So that during GR of subcontract PO, using movement type scrap material with qty gets generated in vendor's place with movement type 545. Then it can be brought to company by movemen type 542. then can be soled also
So at any point of time you can find how much scrap you have in orgnaization (MBLB for vendor stock, MMBE for SL stock.
Regards
Antony

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Hi All,
Need your help for below mention scenario,
For planning, where my planning is start with subcontracting materials.
To clarify more, strategy group is defined in subcontracting materials. Now when I entering Assembly scrap or Component scrap in material master or BOM, system is not considering this scrap percentage for planning.
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Hi Jejesh,
Thanx for reply.
This scrap is required for subcontracting materials.
Setting in material master,
In MRP 1 and MRP 4 view- Define scrap as Assembly and Component scrap as per the requirement.
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