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Evo-ERP and DBA Classic >> Manufacturing >> Scrap Reporting
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Message started by Joe_Claxton on 11/09/04 at 05:51:00

Title: Scrap Reporting
Post by Joe_Claxton on 11/09/04 at 05:51:00

What is the best method for scrapping material when you are not going to rebuild a product?

If you enter under WO-G that you scrapped 1 piece, it issues the material(s) from stock reducing the On Hand quantity, but increases the WIP quantity by 1.

If you issue a -1 under WO-G, Qty Issued, it does remove 1 from WIP, but places 1 pc back as an On Hand quantity. Is there a better way rather than have to manually go in and change the On Hand quantity via Inventory module? This could be very labor intensive with our products.

I guess what I am asking is where can one reduce the WIP quantity and On Hand quantity simultaneously?

Title: Re: Scrap Reporting
Post by lmk223a on 11/09/04 at 06:04:41

We handle scrap/obsolete/unusable material by creating an inventory adjustment transaction through IN-C, tagging it as an "Adjustment" and entering a negative quantity.

This transaction will charge whatever expense account is set up as a default in the Manufacturing defaults menu; it will NOT increase WIP material.

Title: Re: Scrap Reporting
Post by Joe_Claxton on 11/09/04 at 07:24:07

Adjusting a -1 through IN-C, it did reduce the OH quantity and Available quantity, but it did not reduce the WIP quantity.

Title: Re: Scrap Reporting
Post by lmk223a on 11/09/04 at 11:13:49

Sorry, I wasn't aware this piece was already issued to the work order.

There are two choices to get the part out of the work order: 1. WO-G - Unissue it by looking up the date this piece was issued to the work order and reversing the transaction. If it was issued with other pieces, then back out the entire issue and reissue only the remaining pieces back to the work order.

2nd choice would be to do a negative work order issue for -1 piece. This will take it out of the job and put it back into inventory on hand, (which is okay because you just reduced inventory on hand by one piece.) However, the cost for the negative issue may not be the same at which it went into the job. That is why we prefer to back out work order issues and then redo the transaction.

Title: Re: Scrap Reporting
Post by Karen Mason on 11/09/04 at 12:46:56

We do not assume we are going to get all parts on a work order. The difference between the yield and shipped is our scrap. We log our scrap into enter labor (WO-F) and use scrap codes so the various sequences can reflect the proper amount of parts and to see where our scrap is being generated. Of course, I am sure no one else has this problem, but we do have an occassional problem with unreported scrap.

Title: Re: Scrap Reporting
Post by Lynn Pantic on 11/10/04 at 08:22:49

When you issue in WO-G, there is a place for Quantity Issued and one for Quantity Scrapped. If you enter it in Qty Scrap, then you will reduce On Hand but not increase WIP.