Scrap Transactions that don't affect the On Hand Balance?

[SLATETJ]

Scrap Transactions that don\'t affect the On Hand Balance?

We issue all components on our shop floor. When components are found to be um-acceptable, today's procedure is to reverse the issue of the components, then report the scrap & then issue the balance. I want to be able to do a transaction that shows in the cardex recording the scrap, yet not affecting the on hand bal, if the package of components was already issued. How do I setup a IS transaction that doesn't affect the on hand bal?

 

[Bill Meyer]

Re: Scrap Transactions that don\'t affect the On Hand Balance?

Not sure if you are refering to component scrap reporting or work order reject scrap reporting...
Using component scrap reporting functionality will create an "IO" transaction on the Cardex which does not impact the on hand balance... memo entry only on the cardex.

For work order rejects, an IS transaction is created which will create a cardex transaction. If the work order qty was say for 100 units, and on backflush you show completions of 100 of which 10 were scrapped, you will see cardex net qty increase of (100-10 IS) = 90

 

[Krofire.com]

Re: Scrap Transactions that don\'t affect the On Hand Balance?

In response to Bill's point I believe that Slatetj is talking about the Components from the Parts List of a Work Order. In this case he must use the P31116 to achieve the IO transaction described.

By the way, if you use Standard Cost and Manufacturing Accounting you wil find that this transaction creates an Actual A2 Amount in the F3102 Production Cost Table and may be reported as a Variance unless you have a Standard Component Scrap % on the BoM.

Another problem I have found with P31116 is that you cannot 'pre-scrap' in a Backflush environment. It will not allow you to scrap if you have not yet issued.

 

[SLATETJ]

Re: Scrap Transactions that don\'t affect the On Hand Balance?

I am referring to components. As they are issued the value is basically moved to a scrap account which is then relieved by the completions. The theory is that at the end of the run, the account would only contain the value of the scrap. I don't need the scrap reporting for the finiancial impact as you do in a backflushing situation, I need only to monitor part performance.

Thanks to both of you for your assistance.

 

[Nancy_x]

Re: Scrap Transactions that don\'t affect the On Hand Balance?

I'm not sure if my understanding of your question is right or not. In our experience, when we found unacceptable components after material issuing, we do not reverse the issue, but just do a IS transaction to record the scrap. But I think this transaction will affect the on hand balance.

 

[Kumars]

Re: Scrap Transactions that don\'t affect the On Hand Balance?

Slatetj,

If you are referring to components, it is component scrap (IO) that you have to make. It will not make any impact on the on-hand balance. Because impact is already made through the inventory issue (IM) that you have done.
'IS' is meant for scrapping the parent (wo) item. Not clear how you could make 'IS' useful for component transaction as you mentioned in your first post.

If your interest is only to monitor the scrap, I hope you can make a report.