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 Overview

When a work order is processed, you may need to scrap all or a part of the original work order. Completing to scrap allows you to recognize the cost of scrap as a separate, nonplanned cost.

To complete to scrap

1. Select Work Order Main menu > Work Order Transaction Entry.

2. In the Transaction No. field, enter a work order transaction number.

3. In the Type field, select Completion. For more information, see Work Order Transaction Entry - Fields.

When a work order is completed to scrap, you can indicate a scrap quantity or a total cost of items being scrapped. You can also scrap by step if quantity and unit cost information is entered, the work in process is relieved of the total cost of the scrap, and the quantity expected from the work order is reduced. If a quantity is entered without a cost, the system calculates the associated cost automatically based on the outstanding quantity in production and the percentage of that quantity being scrapped.

4. If you enter 0 (zero) in the Quantity field on the Work Order Transaction Entry Lines tab, you must enter the "lot" cost of the scrap in the Costing field. This procedure relieves the cost of the scrap from work in process without changing the quantity expected from the work order.

When the completion to scrap transaction is updated, the scrap cost is debited to the general ledger Scrap account and credited from the Work in Process account. The Quantity on Work Order field for the original planned item code in the Inventory Item Warehouse Detail file is also reduced by the quantity scrapped.

For more information, see Account Maintenance.