Scrap and Waste In Production: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for processing scrap and waste during item production, and to understand (and change, if needed) the settings that affect the processing workflow.
Implementation Checklist
We recommend that before you initially process scrap and waste, you make sure that the needed features have been enabled, settings have been specified and entities have been created, as summarized in the following checklist.
| Form | Criteria to Check |
|---|---|
| Enable/Disable Features (CS100000) | The following features have been enabled:
|
| Chart of Accounts (GL202500) | The GL account to be used for posting scrap costs has been created. |
| Reason Codes (CS211000) |
The reason code that shop-floor employees will specify when entering scrap quantities has been created. The reason code is required only for operations with the Write-Off or Quarantine scrap action. |
| Production Order Types (AM201100) | The needed settings of scrap storage have been specified for each production order type with the Regular or Disassemble function. |
| Work Centers (AM207000) | A work center for each operation that may have scrap or waste as an output has been created. For the work center, in the Scrap Action Default box on the General tab, the appropriate option is selected. |
| Bill of Material (AM208000) | The bill of material has been created, and in the Operations table, the needed option is selected in the Scrap Action column of each operation row. In addition, in the Scrap Factor column on the Materials tab, the scrap percentage is specified for the materials for which waste must be included in the material cost. |
|
Item Warehouse Details (IN204500) |
The scrap warehouse and location have been specified on the Manufacturing tab of the needed form, depending on the option selected in the Scrap Source box of the Production Order Types form of a production order type with the Regular or Disassemble function. The scrap warehouse and location are needed only when multiple warehouses or warehouse locations are used in the system and when movement of scrapped items to storage is tracked (that is, the scrap action for some or all production operations is Quarantine). |
Other Settings That Affect the Workflow
If you want the system to regard scrapped items as completed items and mark the operations of a production order as completed when the sum of completed items and scrapped items equals the quantity to produce of the production order, you select the Include Scrap in Completions check box on the Production Preferences (AM102000) form. For more information, see Configuration of Scrap, Waste, and By-Products in Production: General Information.
Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you manage item production that may also produce scrap or waste by performing instructions similar to those described in Scrap and Waste in Production: To Process a Production Order with No Scrap Settings and Scrap and Waste in Production: To Process a Production Order That Includes Quarantined Scrap.