We did the transaction of Scrap in Time & expense Entry and no financial impact was found for this.
Expectation is as we are scrapping entire job quantity whatever cost job has accumulated in WIP Material, Labour, Burden should be expensed out to Reason code account linked to Scrap reason code.
Does system generate a transaction type once we put scrap qty in time & expense Entry.
Any help would be appreciated.
Thanks
Mohit Wadhwani
Doesn’t work that way. Scrap reported to a job op is treated the same as a good quantity from a financial standpoint. Its simply considered an additional material/labor cost necessary to complete the job.
If you non conformance the WIP and then fail out of inspection with the Reason Code, then you should see the financial impact there.
This will work if you have the “Move Costs to DMR” checked in Company Configuration (Modules->Production->QA) or if you check the “Move Costs to DMR” in the inspection processing form.
This only applies to Assemblies, material costs are removed if you move them off the job into inspection.
Thanks for your Support… Ideally this should be company setting wherein companies opting to directly debit the expense account and credit the WIP should be there wherein we could use the Scrap quantity and Scrap reason code.