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Reply from MathewGeorge on May 26 at 3:21 PM In subcontracting we issue the components to the subcontractor by MB1B with movement type 541
In the subcontracting PO we give the BOM in which components issued are given +ve indicator and byproducts and scraps as -ve
After finished products are ready at subcontractor, we receive goods with MIGO 101 movement type where components are consumed with 543, by-products are created with 544 and scrap with 545.
We return the materials to our stock with 542.
If quantity of scrap is known, we give the percentage of it in BOM. If it is known later, we can move to scrap with 545 and return with 542. We can also use movement type 551 directly to scrapping.
If there is difference in quantity of consumption , we do subsequent adjustment with MIGO or MB04 with movement type 121
By-products are useful materials created while processing another material. It can be used for other processes. Scrap are created in the process but not used in any other process.
Matthew
| | | ---------------Original Message---------------
From: GURU
Sent: Friday, May 25, 2012 6:06 PM
Subject: Scrap / By Product in Subcontracting
Hi Gents
i have some doubts on Subcontracting
I have Material codes for the following
1) Material-1: ABC [Components],
2) Material-2: DEF [Components]
3) Material-3: FIN, [Which is a finished Product]
I will be sending this Components to Subcontractor.
i am asking you in real time Business,
1) one would be knowing that there will be By-Products from the subcontractor after processing the components?
2) Since I haven't worked in real business, I don't know on what angle people are meaning the word Scrap, whether they are referring as a damaged material or A small piece of something that is left over after the rest has been used
PLEASE
In the above case, if SCRAP is small left over piece after processing, then how can we know the Qty before in hand, which many are suggesting to maintain in BOM with -Ve Qty.
Since I don't know there will be a Scrap after processing and will be returned by subcontractor along with Finished goods, that is I haven't maintained the SCRAP in BOM because of the reason said. How to handle this scenario
Thanks gents
Regards
Guru |
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