When we scrap material on a shop order operation, the “Scrapping in Operation” transaction is only pulling through the labour component of the scrapped part.
From what i have seen all the cost buckets that make the unit cost of the part including the material should be included. We have rolled up the part cost and everything appears as it should be elsewhere.
How do we configure the system so it pulls the material components into the scrapping in Operation transaction? Any advise would be appreciated.
Best answer by dameenda
Hi;
There is no specific setup.
The material must have cost defined and for the first operation, the cost of connected material and non connected material are included for the Cost of Scrap.
for other operations the WIP up to that operation and cost of any connected material are considered.
The example below I have a Purchased Component Part with the estimated material cost defined (not connected to any operation in the Product Structure/ Shop order material Tab).
Then report Scrap for 1 piece.
In inventory Transaction History I get the material cost in the Scrap Transaction as below.
Please check if you have any material Cost in the Shop Order Estimated Cost and if the Operation you scrap is the first, then either you need to have unconnected material or material connected to that first operation to get the material Cost in the Scrap Transaction.
For the other operations, then the previous operations must have material cost (Connected or non connected Material) or the Operation being Scrap is connected to a Component part (In the Material tab) with a Cost.
You can easily find what operation is connected to a material simply by observing the “Operation No” column against the Material Cost bucket in the Shop Order Costs/ Order Cost Estimates Tab.
The material must have cost defined and for the first operation, the cost of connected material and non connected material are included for the Cost of Scrap.
for other operations the WIP up to that operation and cost of any connected material are considered.
The example below I have a Purchased Component Part with the estimated material cost defined (not connected to any operation in the Product Structure/ Shop order material Tab).
Then report Scrap for 1 piece.
In inventory Transaction History I get the material cost in the Scrap Transaction as below.
Please check if you have any material Cost in the Shop Order Estimated Cost and if the Operation you scrap is the first, then either you need to have unconnected material or material connected to that first operation to get the material Cost in the Scrap Transaction.
For the other operations, then the previous operations must have material cost (Connected or non connected Material) or the Operation being Scrap is connected to a Component part (In the Material tab) with a Cost.
You can easily find what operation is connected to a material simply by observing the “Operation No” column against the Material Cost bucket in the Shop Order Costs/ Order Cost Estimates Tab.
Thank you, though it didn’t solve our problem it did help us put the pieces togather. Our issues appears to be the cost template used againt the parts.
For a Manufactured Part with components and operations, the total cost that will be incurred to manufacture 1 unit would be the Unit Cost, in other words the Cost of all Raw Material, Semifinished material and the Cost Of all Operations. This will be seen as unit Cost for the Inventory Part.
For and example a Parent Part consists of
1 raw material (Unit Cost =1) and
2 Operations with Cost =1 for each operation,
so the unit Cost =3
If you issue Raw material for 1 unit and report Scrap at Operation 1, then you have not performed any for Operation 2
So the Scrap Cost will be 2
This is definitely different to the Unit Cost of 3
This is very clear but the issue is its not reflecting as you have mentioned.
So what I have done is I have two operations 10 & 20, and I have connected a component to my first operation.
Then I report scrap in my second operation 20.
When I scrap in Opp 20 the transaction history cost does not include the correct unit cost of the connected component to the Opp 10.
Lets say the unit cost of the connected component to the Opp 10 (First Operation) is 1 and When I report scrap in the Opp 20 the inventory transaction cost shows as 0.13 something.
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