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Microsoft Dynamics NAV (Archived)

How to track raw material component scrap from production orders

Posted on by Microsoft Employee

Is anyone tracking raw material scrap from production (by order and by component item number) using Dynamics NAV? 

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: How to track raw material component scrap from production orders

    Thanks, Martin.  I like that...it seems like it is only a form change as the field is available, but not displayed on the form.  I'll give it some thought.

  • Martin Kerr Profile Picture
    Martin Kerr 210 on at
    Re: How to track raw material component scrap from production orders

    Lewis.

    I did not think to mention as i thought you may have already tried it but is similar to dimesion option.

    We have added the reason code field to the consumption Journal a few times and that hits the warehouse entries. Of course that will only work if you are using Bins but that has allowed us to do some pretty clear reporting on the consumption entries by scrap code by RPO etc.

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: How to track raw material component scrap from production orders

    Thanks for all of the replies.

    I like the idea of using a dimension to differntiate normal consumption from scrap consumption.   I am testing with that now, but have yet to see any results show up in Analysis by Dimension.  ...still playing with it.

  • TWBlaisdell Profile Picture
    TWBlaisdell on at
    Re: How to track raw material component scrap from production orders

    Hi Lewis,

    Thank you for the update.

    By entering the two separate lines in the Consumption Journal, you would be able to use a different Dimension Set on the two different consumption postings.  For example, you would have a Consumption Journal Line for the consumption of 12 going to one Dimension set based on Production Order defaults.  You would then have a second line for 2 with the scrap with a different Dimension set.  My concern is that this will only impact the movement of the 2 consumed components' cost into WIP.  In the end, the system is going to clear WIP and post Finished Goods Inventory based on the Released Production Order Dmensions. Therefore, you may lose the effect of the posting of scrap.

    An alternative would be to post through the Item Journal a Negative Adjustment for scrap and have a special Inventory Adjustment Expense Account setup with a specific General Product Posting Group (GPPG) for scrap expense.  You would then change the General Product Posting Group on the lines of the Item Journal from the default Item Card's GPPG to the special scrap GPPG to record the scrap posting to this special Inventory Adjustment Account to manage the tracking of scrap expense. The only challenge with this is that you would not have the direct link to the Production Order, unless you identified a way to reference the Production Order No. the entry relates to.

    I hope this helps. I'm trying to think of some other alternatives for you. I think it all comes down to what you are trying to report on after the fact.

    Best Regards

    Tom

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: How to track raw material component scrap from production orders

    Tom and Martin,

    Thanks for your replies.  

    We do manual consumptions, usually pulling more stock than we need onto the production line, then we do a consumption entry.  Later, we reverse-consume whatever was not used and returned to stock.  

    The hope was to be able to enter scrap quantities for components in the Consumption Journal (ex:  12 labels consumed and 2 labels scrapped = total reduction of inventory of 14 labels).    

    Martin – how are you using dimensions to track material scrap.  Do you actually enter a scrap quantity anywhere?

    I am thinking of a possible modification to the consumption journal to have a new field for entry of component scrap qty.  It could update a new field on the production order.  We don’t really need any other functionality on the field; we could just report off of it.  In this case the consumption qty would continue to be equivalent to the inventory reduction quantity and the new field would just explain what portion of the reduction was due to scrap.

    Lewis

  • Martin Kerr Profile Picture
    Martin Kerr 210 on at
    Re: How to track raw material component scrap from production orders

    We have had success just using the consumption journal and a shortcut dimension for the scrap code/reason code.  Then adjusting the reporting a bit so that you can easily understand the loss against the order. The one problem you can have with this is if you are using WMS as the extra consumption does not increase the required on picks for more material to complete the run.

  • TWBlaisdell Profile Picture
    TWBlaisdell on at
    Re: How to track raw material component scrap from production orders

    Hello Lewis,

    Thank you for posting your question on the Microsoft Dynamics NAV Forum.  

    The management of scrap in Manufacturing is covered in the Manufacturing II training material.  Chapter 9 in the Additional Manufacturing Topics Chapter discusses how standard NAV processes scrap. However, with this provided, I'm not sure what the full requirement is here.

    mbs.microsoft.com/.../course80261.htm

    Thanks again for posting on the Forum. I hope the documentation helps.

    Best Regards

    Tom

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