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Assembly Scrap Transactions

Costing Assembly Scrap Transactions

If you move assemblies into the scrap intraoperation step of an operation and the WIP Require Scrap Account parameter is set, you must enter a scrap account number or account alias. If you do not specify that a scrap account is required, it is optional. If you do not provide a scrap account the cost of scrap remains in the job or schedule until job or period close. If the job is then completed using the final completion option in the Completion Transactions window, the cost is included in the finished asembly cost. Otherwise, the cost is written off as a vaiance when the non-standard asset and standard discrete jobs are closed and at period close for non-standard expense jobs.

Work in Process considers assemblies that are moved into the Scrap intraoperation step from the Queue or Run of the same operation as complete at that operation. Operation completion information is updated, components are backflushed, and resource and overhead costs are charged according to the elemental cost setup. See: Scrapping Assemblies.

If a scrap account is entered, the cost of scrapped assemblies is determined using an algorithm that calculates the assembly costs through the operation at which the scrap occurred and the scrap account is debited and the job elemental accounts are credited. If you move assemblies out of a scrap operation step, thus reversing the ordinal scrap transaction, these accounting entries are reversed.

The accounting entries for scrap transactions are:

Account Debit Credit
Scrap account XX  
      WIP accounting class valuation accounts@predefined amount   XX

The accounting entries for reverse scrap transactions are:

Account Debit Credit
WIP accounting class valuation accounts@standard XX  
      Scrap account   XX

See Also

Overview of Shop Floor Control

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