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[Roland Schenk]

In the production journal I have output and scrap quantity columns. If my output is 150 but I scrapped 5 how would that be posted?

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Roland Schenk
DELCATH SYSTEMS
Queensbury NY
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[Matt Traxinger]

I haven’t dealt with scrap in a long time so I don’t have the exact answer. I’d recommend posting the same transaction in your test database and navigating on it to see the results.

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Matt Traxinger
NAV Developer
ArcherPoint Inc.
San Antonio TX
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[Ron Ketterling]

Is 150 the “good” quantity or the total quantity? If the total, enter 150 in the output and 5 in the scrap, netting 145. Or just enter 145 and NAV will increase the cost by dividing total cost by 145.

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Ron Ketterling
President
Business Automation Specialists of MN, Inc.
Minneapolis MN
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[John Grant]

Roland –

To add to the group comments – reporting / posting 145 good 5 scrap will backflush components as if you made 150 using backflushing. If you backflush labor 150 will also be used to calculate labor. As Ron pointed out the total cost in the Production Order will be divided by 145 to calc the new unit cost even though you reported 150.

Best Regards

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John Grant
Senior Application Consultant
Innovia Consulting
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[Rick Dill]

Hi Roland, I hate to start out answering this way, but it depends…..

It depends on whether or not you are using back-flushing or not.  If you are using  back-flushing on either then BOM or Routing, then it will consume inventory/labor based on the BOM and Routing information. 

If you have not setup back-flushing, then there is little financial impact.  Reporting scrap in that scenario provides a reporting capability to report on scrap performance. NAV calculates all financial impact by taking all costs brought into WIP and dividing it by the number of pieces moved into inventory. 

The inventory cost of the items in stock will include the costs of the scrapped pieces as NAV does not charge reported scrap to a scrap G/L Account.  Therefore the cost of labor and material to produce parts that were scrapped would be included in the cost of the items moved to stock (in a FIFO/LIFO environment) or variances in a standard cost environment.

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Rick Dill
Consultant
ArcherPoint Inc.
Waupaca WI
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[Alex Wiley]

That would be Output of 145 and Scrap Qty of 5. I think that’s the information you’re looking for?

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Alex Wiley
Haschen
Denver CO
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[Alex Wiley]

To be more clear – only the product you want in inventory is Output Quantity. Scrap Qty only functions to show why more raw materials were consumed, it doesn’t offset the Output in any way.

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Alex Wiley
Haschen
Denver CO
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