Hi all! I have a question: How does the system handle raw materials wasted/scrapped in production? How does it handle labour wasted Thanks Tatiana
Hi Tatiana That depends upon whether you are building in the scrap - defined on each produciton BOM, and routing. Alternatively you capture this by recording actual consumption and output - so if you are auto flushing you will need to do manual journals
- Scrap: When you define it on the BOM or Routing, IT does take care by ordering higher quantity according to Fixed scrap quantity or percentage. But: If the generated scrap also is accounted for Inventory and resale etc. than I suggest adding a negative Qty. line on the BOM with a separate item code defined for the scrap. However I have not thought of labour/inventory cost entries while suggesting this. DD