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  • Deb Peters

    Member
    May 3, 2024 at 8:52 am in reply to: Routing Scrap Factor?
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    Thanks, Steve. We’ll look at the BOM Scrap %. One more follow up question: if for example we have $100 material and add 5%, then $105 of material will be in the standard cost and also issued to the production order and if they only consume $85 worth of material, does $20 go to favorable material variance?

  • Deb Peters

    Member
    May 2, 2024 at 8:46 pm in reply to: Routing Scrap Factor?
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    Thank you Steve. We might be looking to use it for components or raw material only. We are interested in making sure purchasing/planning buys enough materials. Also, does this change the standard cost of the production item when the scrap factor is added in either the routing or the BOM?

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