We are trying to take into account production yield/scrap into account for our standard cost when we do a cost roll. Additionally, we are looking for these factors to be taking into account for planning purposes as well.
I don’t see an field to specify yield/scrap at the part level (maybe I’m missing it) so I looked at the MOM.
I have a part number with a MOM that has all materials related to the first operation. I entered a 10% scrap value on this first operation, did a cost roll, and the labor and burden went up 10%, as expected, but the material cost did not increase at all.
I then went and added a 10% scrap to each material, did a cost roll, and the cost for labor and burden stayed at 10% increase but the material increase 80%.
I have a calling into support as well but I thought I would check with the group.
Am I approaching this correctly, given what I’m trying to do?
Epicor Applications Manager
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