backflush / scap / and the general ledger

version 6.1

i'll try to be brief but this requires some level of explanation. we're trying 
to keep our inventory qty's correct and also keep the WIP value correct in the 
general ledger when we scrap parts that are issued via back flushing.

the situation:
suppose we cut a work order for 10 pieces. the component parts in the b/m are 
coded to backflush at various operations as the operations get reported via 
SFC650. if every thing works ok, fine.

but now suppose we put some parts together at operation 10 and we find out that 
one of the 10 items being built won't work and needs to be scrapped. if we go 
to SFC650 and report 9 in qty food and 1 in qty bad bpcs does the following:
- generates CI transactions to issue 10 set of components from the perpetual to 
WIP. these transactions get booked to the general ledger and not the perpetual 
inventory account is decreased and the WIP inventory account is increased by 
the value of the components issued. the on-hand qtys of the components parts 
are ok.
- updates the shop order header to show 1 in qty finished. this tells MRP that 
the most it can plan to get from this work order now is 9 units.
- generates an RJ transaction using the shop order parent part number for a qty 
of 1. this transaction get booked to the general ledger and reduces the WIP 
inventory account and increase the value of the scrap expense account by the 
value of the parent part. this is the problem. we may only have issued a few 
components to the shop order (and to WIP inventory account) but the RJ 
decreases this account by the total value of a fully completed parent part. 
this greatly inflates the value of the scrap expense account.

what do we think should happen? we think that bpcs should generate the 
following transaction for this scenario
-generate a RJ transaction for the qty bad reported on the operation for every 
CI transaction it generates via back flushing. thus in the example above it 
would issue 10 sets of component part from perpetual to WIP and then it would 
remove the value of 1 set of these components from the WIP account
- go ahead and update the shop order header to reflect a qty of 1 in qty 
finished. MRP needs to know that it is now only going to get 9 units.
- go ahead and generate the RJ transaction for the parent part number. this 
would be for tracking purposes only. this RJ transaction would have to be coded 
to NOT book to the general ledger.

if you understand this, do you have any thoughts, experiences, or prayers you 
can share with us? how do other companies do the accounting for situations like 
this?