Where do the costs associated with a Manufacturing Scrap Transaction entry ultimately end up in the GL? I realize that when we do a scrap transaction, the costs of that transactions stay in WIP until the MO receipt. That being said, does the scrap cost just get rolled into the unit cost, along with the other material and labor?
Thank you.
Doug
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You can make additional issue transactions of items to WIP for the MO and add the additional cost of the replacement items to WIP. Simply use Component Transaction Entry and, if the item is still listed, add more to the quantity, or if the item is not still listed, use the additional item button to add a new item (it can be the same part number) to the picking list.
Additionally, once you scrap an component from WIP, how do you replace that component?
If I understand this correctly, once an item is issued to the job, you may post or save (which one do you use and does it make a difference) a scrap transaction that removes the quantity from WIP but will still track the cost against the job.
My question is do I have to then re-add that scrapped item to the picklist? My scenario is that the item is needed for the job, we broke it so we scarp it, but we still need another one. How does that one get allocated issued etc
Regarding this statement:
"The other key thing to realize is that there is no financial transaction resulting from a Scrap transaction. The assumption is that these costs are still rolling into the cost of the MO. But it is a way of identifying why there may be increased costs--we can look back to see that a certain number of components were scrapped due to some deficiency or damage. "
Where do you look to see the components scrapped to a MO?
In our industry we have to track scrap separately in the GL, and provide scrap data back to our customers..
The scrap functionality in GP Manufacturing is designed to allow you to flag already issued components as scrapped. This means that you must first record an issue transaction against the MO to identify components that have been taken out of Inventory and put into production. Then as long as those components are still in WIP--meaning they haven't yet been consumed on an MO Receipt, you would be able to open the Component Transaction Entry and record a Scrap transaction.
So there are some requirements:
1. Quantities issued into WIP are available to scrap.
2. Quantities consumed from WIP are not available to scrap.
Essentially for any given component, the quantity that you can scrap for a given MO is this:
Quantity issued into WIP for this MO - Quantity consumed from WIP for this MO
The other key thing to realize is that there is no financial transaction resulting from a Scrap transaction. The assumption is that these costs are still rolling into the cost of the MO. But it is a way of identifying why there may be increased costs--we can look back to see that a certain number of components were scrapped due to some deficiency or damage.
If you have any further questions please let me know.
Becky
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