Scrap

  • Posted by Roland Schenk on December 13, 2016 at 10:36 am
    • Roland Schenk

      Member

      December 13, 2016 at 10:36 AM

      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

      Member

      December 13, 2016 at 11:01 AM

      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

      Member

      December 14, 2016 at 6:55 AM

      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

      Member

      December 14, 2016 at 9:27 AM

      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

      Member

      December 14, 2016 at 10:02 AM

      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

      Member

      December 14, 2016 at 10:45 AM

      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

      Member

      December 14, 2016 at 10:50 AM

      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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    Roland Schenk replied 7 years, 4 months ago 1 Member · 0 Replies
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