Scrap can be recorded by entering a completion type entry in Work Ticket Transaction Entry.
Items are scrapped when they fail to meet quality and/or configuration requirements and cannot be reworked.
When a completion-type entry is designated a scrap entry, the value assigned to the scrap entry is removed from the work-in-process account (credited) and debited against the scrap account assigned to the work ticket's work ticket class.
There are two approaches for recording scrap, which are described in the following sections.
Scrap the finished good for all steps
To use this method:
- Enter a quantity to scrap.
- Enter step numbers in the From Step No. and To Step No. fields to include the entire work ticket.
- Leave the Scrap Unit Cost field set to zero.
The value of the scrapped item(s) is calculated based on the cost method selected for the completion transaction.
Scrap an amount for certain steps
This method requires you to manually calculate the amount to be considered scrap.
To use this method:
- Enter the quantity to scrap.
- Enter the applicable step numbers in the From Step No. and To Step No. fields.
- Enter a cost in the Scrap Unit Cost field.
The scrap unit cost is removed from the work-in-process account.
