Rework of FG :- Material replaced under rework of finished components should be first transferred to scrap location through MB1B –> Mov.311 and then scrapped through transaction MB1A–> Mov.551 from scrap stor.
Material flow should be Return sales order –> Post goods return delivery in –> billing document –> Excise JV(Trans – J1IH), now remove stock of FG through MB1Aà Mov.
Follow Goods return note–> exsice invoice (J1IS)–> MIRO (Credit note)Ĭustomer return :- M aterial received from customer,.
or if already transferred to storage location, then transfer it to scrap location through 311,
Make transfer posting through transaction MB1B Movement type 321 from quality inspection to stor.
Supplier return :- M aterial received from vendor with poor quality standards (rejections,scrap etc.), S210, and reconsile challan later with the material document created from 542 movement.
Make transfer posting through transaction MB1B Movement type 542, from vendor stock to stor.
GI for scrapping the material:- Now we need to make goods issue of material which are confirmed to be scrapped from the system.through transaction MB1a Movement type 551- GI for scrapping plant & scrap storage location and for material which refers to perticular profit center as per product hierarchy. Scenario 1 :- Production line rejection is generated at the time of production, so confirming the scrap at the time of production order confirmation in transaction Co11N,Įnter raw material/semifinished material (whichever has been detected as scrap) and scrap qty 2 pcs for example, Scrap location & movement type 531 and choose save.Īfter saving the ok qty will flow in usable stock and the scrap qty will flow in scrap location as a receipt by-product. Scenario 4 :- customer returns (scrap handling)Īll scenario required a seperate scrap location which is excluded from MRP area, Scenario 3 :- supplier returns (scrap handling) Scenario 2 :- scrap generated at subcontractor (for Indian scenario) Scenario 1 :- scrap generated during manufacturing ( production line rejections) The basic purpose of this blog post is to share the way to manage scrap generated in a discrete manufacturing industry for below said scenarios, as some companies prefer to make scrap management & accounting from of SAP.