Component Scrap

After you issue parts to a work order, you might need to report some of them as scrapped. Scrap is unusable material that results from the production process. You use the Component Scrap program (P31116) to specify the amount of material to be scrapped and the reason.

When you report the quantity of component material that you had to scrap, you create a memo-only item scrap transaction (IO) in the Item Ledger table. When you run the Manufacturing Accounting Journal Entries program (R31802A) for work in process or completions, the program calculates the new A2 cost value for the parent entry in the Production Cost table, but it does not write a journal entry. If the amount of the scrapped material differs from the scrap percentage on the bill of material, the system uses this difference to update the amount of the actual variance.

The Work Order Parts List table stores unaccounted scrap amounts and units.