Each raw material has individual dependent requirements. There can be environmental factors, as well as certain manufacturing methods that may result in the generation of assembly scrap.įor example, let’s assume that there is a finish goods assembly that requires three raw materials. There are mainly three types of scraps generated during manufacturing.Īssembly processes generate scrap due to various reasons. By maintaining scraps in the system, the planning run will consider the scrap percentage while material requirement planning and generate the requirements to meet the expected yield. It is important to identify and record this scrap to capture the scrap-related cost and ensure material availability. Manufacturing and assembly processes generate scrap during different stages of the production life-cycle. This will end the material management (MM) scrapping process in SAP. The cost of the scrapped material will be posted to a cost center in SAP. The second document is the accounting document which will have the financial information of the scrapping process such as the accounts in which the debit and credit postings happened. The Material document will have the stock-related information such as the quantity reduced, movement type, date of the posting, etc. Once the scrapping movement is executed in SAP, two documents will be posted.
SAP MOVEMENT TYPE FROM UNRESTRICTED TO QUALITY CODE
We can view the stocks by using the transaction code MB52 or MMBE.
When the document is posted, these stocks will be reduced from the system.
Enter the cost center to which the scrap value must be posted. Identify the material and the quantity to be scrapped. Set the movement as 551 which is the goods issue for scrapping. Follow the below steps in MIGO to carry out the scrapping movement. We can use MIGO or MB1A, where the latter transaction code is obsolete in the latest SAP S/4HANA version. Goods Movementįor the scrapping of materials, there are two transactions that we can use in SAP. If the stocks belong to special stock types such as sales order stocks, consignment stocks, project stocks, etc., it is possible to maintain the special stock type during the scrapping process and a corresponding movement type will be used. Scrapping from quality inspection stock is done with movement type 553, and scrapping from blocked stock is done with movement type 555. Scrapping from unrestricted stock is done with the movement type 551. SAP has given the provision to scrap from all three of these stock types and SAP has provided three movement types for each of the stock types. The quality inspection department will check the parameters of the materials and will give the final decision for scrapping. Generally, materials that need to be scrapped are maintained in the quality inspection stock or blocked-stock category. By posting them into quality inspection stocks, these stocks/batch are segregated to see any possible quality issues or pending quality assessment. In SAP, a stock is maintained in three stock types:Īt the point of goods receipt or production confirmation, it is possible to decide whether the stocks need to be posted into quality inspection stock type. Semi-finished goods and finish goods are also scrapped when there are quality issues, damages, or when those materials cannot be used further in the value stream. There can be many reasons to scrap raw materials such as shelf-life expiry, damaged goods, quality-related issues, and slow-moving items.īelow are the basic steps of a purchasing process: Material Purchasing Process Based on the inspection, it will be decided whether the received goods meet the quality standards or need to be scrapped. Quality inspection is done based on an inspection lot created at the goods received point. Upon receiving, a quality inspection will be done for the goods received. Raw materials procured from vendors will be received at the warehouse. Other than these main types, there can be equipment or asset scraps. 
Scrap can be categorized into three main types as raw material scraps, semi-finish good scraps, and finish good scraps.
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