RE: Scrap in Cost of Sales

Problem with lot control is the tie between customer order and shop orders
is limited to the final assembly shop order - there is no tie to the
sub-assemblies' or components' shop orders.  What it sounds like Al is
trying to do is trace the scrap down through all levels of the BOM.  At each
level he wants to find out if some scrap quantity (perhaps a percentage of
the full scrap at any level) should be applied to his sales order cost.


Roy Luce

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-----Original Message-----
From: bpcs-l-bounces+lwl=ix.netcom.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+lwl=ix.netcom.com@xxxxxxxxxxxx]On Behalf Of Andy
Newell
Sent: Thursday, September 15, 2005 12:32 PM
To: 'SSA's BPCS ERP System'
Subject: RE: [BPCS-L] Scrap in Cost of Sales

Would you happen to lot control? If so the finished good lot number would be
a means to link a customer order to a shop order and its associated scrap
transactions.

Andy


-----Original Message-----
From: bpcs-l-bounces+anewell=phoenixbcinc.com@xxxxxxxxxxxx
[mailto:bpcs-l-bounces+anewell=phoenixbcinc.com@xxxxxxxxxxxx] On Behalf Of
Al Mac
Sent: Thursday, September 15, 2005 12:06 PM
To: BPCS_L discussion
Subject: [BPCS-L] Scrap in Cost of Sales

Is scrap (which we report viia labor JIT600 which ends up in RJ
transactions in ITH) reflected in any cost-of-sales files in BPCS 405 CD,
that we could data mine?

We also have 8% yield on selected raw materials to compensate for a
perception that scrap is under-reported.

I run various reports for management
(a) how much $ in some date range involved in scrap, broken down various
ways
(b) material component cost as a percentage of $ billed
I was recently asked if scrap $ included in cost of goods sold
I am 99% sure that it is not because scrap is part of ACTUAL reporting,
while our cost reports are based on the STANDARD

When we first setup BPCS eons ago, we put in an expected scrap rate of 2%,
but that led to MRP telling us to make 2% extra across the board, which we
did not want, so we took that out of our standard.

We have sub-components in our BOM structured so that they could conceivably
end up on more than one customer # of end item, but I guess we could look
at actual sales of those end items in the month of production, and the
following month, and pro-rate the scrap as probably being for a customer
with concurrent activity.

I am looking for ideas to get a report that shows cost of scrap by customer
for some date range.

-
Al Macintyre  http://www.ryze.com/go/Al9Mac
BPCS/400 Computer Janitor ... see
http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html
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