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Dynamics 365 Community / Forums / Microsoft Dynamics NAV (Archived) / Scrap in production
Microsoft Dynamics NAV (Archived)

Scrap in production

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Posted on by lilaboso 100

I have production of metal elements. In every production order, I have the scrap output and this is my problem.

I know, in NAV exist scrap evidency, but it doesn't work as I want. I want to have inventory evidence for scrap, because I need to sell metal scrap.

I need to post scrap output per production order. I use FIFO costing method for goods and I want that scrap have 0,00 cost, because I want to all production order cost go to main goods, not to scrap.

I want only material evidency (no cost, only quantity) for scrap because I want to sell it.

Any idea?

*This post is locked for comments

  • Verified answer
    Aleksandar Totovic Profile Picture
    Aleksandar Totovic 16,765 on at
    RE: Scrap in production

    If this process satisfies, you can use FIFO method also. I used this method. I set negative line in BOM and it scrap item will be in production journal. When you post item negative consumption, never mind what method is set on them. Cost will be allocated only on output line, not for consumption line.

    You have to be careful to never post some cost to tghe this scpar item (from purchase e.g.). If you do that, then you will get cost more then 0,00.

  • lilaboso Profile Picture
    lilaboso 100 on at
    RE: Scrap in production

    But you wrote to set standard cost on scrap item. I need do set FIFO.

  • Suggested answer
    Neville Foyn Profile Picture
    Neville Foyn 4,320 on at
    RE: Scrap in production

    Hi

    We have done something similar for a company, NAV production orders allow you to post negative consumption in the consumption journal

    Create a new item, call it metal scrap, set it to be standard cost and the cost of 0, this means that should anyone actually post a cost with some kind of adjustment it will just go through as a variance and not affect the cost of the scrap, it also means that when you sell the scrap you will record it as a profit, lastly you can use inventory posting groups to determine where the postings on this scrap item end up in the GL.

    On your consumption journal specify the scrap item and use a negative qty, this will actually increase the stock of scrap, at the cost you have specified.

    The benefit to doing it this way, is that the output cost wont get allocated to the scrap, and you will be able to record multiple scrap entries as the process is followed not just at the end of the process.

    Hope this helps

    Nev

  • lilaboso Profile Picture
    lilaboso 100 on at
    RE: Scrap in production

    I want posting from production order, because my business process require it.

  • Suggested answer
    Aleksandar Totovic Profile Picture
    Aleksandar Totovic 16,765 on at
    RE: Scrap in production

    You can use Item Journal for scrap. You can post positive correction with 0,00 direct cost.

  • lilaboso Profile Picture
    lilaboso 100 on at
    RE: Scrap in production

    It is possible using family, but only if I use Standard costing method. If you use FIFO method, cost will go to all outputs.

    I don't want it. I want to cost go only to main good.

    This is not solution for me.

  • Suggested answer
    Aleksandar Totovic Profile Picture
    Aleksandar Totovic 16,765 on at
    RE: Scrap in production

    Why you don't use a families? You can post output for two or more items in same time.

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