Report Scrap for No Credit

Explanation

Inspection results can be entered for inventory registered parts, non-inventory registered purchase parts, and no-number parts. This must be done when the quantity to inspect is larger than zero (0). For inventory parts, you must enter the inspection results before you are allowed to move the parts into a stock location. Concerning non-inventory parts or no-number parts the results have to be entered to complete the receipt. Use of serial numbers affect the handling.

You can enter the inspection results via the Receipt page (and some related places) or the Inspection Management page. Both pages lead to the same dialog. Inspection results can be reported regardless of where the parts are situated, i.e., in an arrival, inspection, or stock location.

When you enter the inspection results, faulty parts can be scrapped. The scrapping cause can, for example, be that the parts are damaged in your warehouse. The financial burden of rejected parts is placed on your company.

If you are using IFS/Quality Management and have created an analysis, tested the parts in question, and reported the results in this component, you can use these results as a guideline when you enter the inspection results and scrap, in the receipt function. 

A scrapping is normally entered per scrapping cause in the appropriate place when entering the inspection results. You can specify several scrapping causes for a receipt line. Do this by entering one line for each return cause. Example: You have a receipt line with ten parts. Six parts are entered as approved, one part is returned by the return cause A on one line, and three parts are returned by the return cause B on a second line. To make a full report, the sum of the quantity approved and any quantities scrapped or returned should be the same as the quantity to inspect. Otherwise, you have done a partial report of the inspection results. Note that for catch-unit-enabled parts, you must specify the catch quantity scrapped. 

However, when you scrap several lines with the same scrapping cause on a receipt line, such as serial numbered parts, it is time-consuming to enter a new line and specify the scrapping cause for each serial number. Instead, you can select all desired lines in the Receipt/Details tab and specify the scrapping cause in advance by clicking Scrap Receipt Lines. A dialog opens and you can specify a scrapping cause and the type for all selected lines. When this is completed, the dialog for entering the inspection results opens with the scrapping cause and the type specified per serial number already entered in the proper place. You can remove a line that is selected by mistake. It is also possible to change the scrapping cause on a single line.

If you for some reason have entered a scrap by mistake, you can undo this action. For parts where the scrap is undone, you must enter an inspection result before the parts can continue in the work flow.

Note: Rentals cannot be returned as rework/credit and/or scrap during purchase order inspection.

Prerequisites

• The parts must have been reported as arrived in the Register Arrivals page.
• The receipt line must have an inspection demand, either an inspection code or a quantity specified manually in the receipt function.
• The receipt line should be in the status To be Inspected.
• The scrapping cause must have been entered in the Scrapping Causes page .
• The ownership type of the parts cannot be Supplier Loaned.
• For purchase orders connected to an outside operation:
  • If WIP products are linked as the To Operation, the corresponding quantity of those WIP products must either be already issued, or enough quantity must be at the inbound location(s) defined for the resource or work center. WIP products connected to a shipment must be issued by delivering the shipment.
  • To report scrap for a serial number or lot/batch number, sufficient component quantity must be included in the tracked structure of the scrapped serial number or lot/batch number. Only components connected to operations up to and including the operation on which scrap is reported are considered. Components connected to parallel operations, succeeding operations, no operation, or operations where Reserve/Issue Method is set to Manual are excluded. Components connected to an operation with Manual Operation Quantity enabled are considered only when scrap is reported on that operation.
  • If the scrap is reported for a serial number and the part is connected to a serial lifecycle group, the serial number to scrap must not already exist for another part in the same group, except if the Operational Status of the existing part serial is Renamed, or automatic serial rename has been defined on the Serial Lifecycle Group page. The below conditions must be fulfilled in order for automatic serial rename to occur:
    • The shop order type is Remanufacturing.
    • An automatic serial rename record must exist where the From Part is the part for which the serial number currently exists, the To Part is the part to scrap and the Process is set to Remanufacturing Shop Order.
  • The Operational Status of the existing part serial is not Renamed.
  • The Current Position of the existing part serial must be either:
    • Returned to Supplier.
    • Contained and the Current Position Top Part must be Returned to Supplier, Issued (to a customer order, project deliverables or without order connection) or Unlocated (and the top parent Operational Status must not be Scrapped).
    • Issued (to the same shop order, a closed shop order, a customer order, project deliverables or without order connection).
    • Unlocated and the Operational Status is Disassembled.
  • The serial number must not be defined as a VIM, Equipment, Tool Equipment or a Plant Design object.

System Effects

For purchase orders connected to an outside operation, the scrap for no credit is also recorded as scrap on the operation:

• The Scrapped Qty is increased for the operation. The remaining quantity of the following operation decreases by the scrapped quantity. If the operation on which the scrap was reported has the Increased Lot Size on Scrap option enabled, the following operation will not decrease the remaining quantity by the scrapped quantity.
• Operation history transactions are created.
• If a serial number is selected, a part serial record is created, or the existing part serial record is updated and the serial number is unreserved from the shop order.
• If a lot/batch number is selected, the scrapping is recorded on the part lot/batch and its remaining quantity is reduced.
• If scrap is reported for a serial number or lot/batch number for a multilevel-tracked part, components in the tracked structure that can be determined to be included in the scrapped parent part are moved from the parent tracked structure to the tracked structure of the scrap transaction. This includes components connected to operations up to and including the operation on which scrap is reported. Components connected to parallel operations, succeeding operations, or no operation are excluded. For components with Reserve/Issue Method set to Manual, and for components connected to operations where Manual Operation Qty is enabled, only the quantity that would otherwise result in an excess quantity in the remaining tracked structure is included. However, when scrap is reported on the operation to which a component with Manual Operation Qty is connected, the full component quantity is included. The tracked structure of the parent serial number or lot/batch number is then rebuilt to reflect the remaining quantity and component structure.
• If scrap is reported for a serial number and the scrapped part is connected to a serial lifecycle group, and the same serial number already exists for a part with automatic serial rename defined, the existing part serial is renamed to the scrapped part, as follows:
  • The Current Position of the serial number for the existing part on the Part Serial page is set to Unlocated and the Current Position to Renamed.
  • The rename is logged on the Part Serial Rename History page with the Rename Reason set to Serial Lifecycle Rename.
  • Document and technical class characteristics attached to the part serial of the renamed part are moved to the part serial of the scrapped part.
• When a WIP product is connected to an outside operation as the To Operation:
  • The WIP products that are not connected to a shipment and have not already been issued will be backflushed primarily from reservations at the inbound location(s) defined for the resource. If the available quantity is insufficient at those locations, the system issues from the inbound location(s) defined for the work center.
  • The Issued Quantity on the shop order WIP product line is increased.
  • Inventory transaction history SOWIPISS is created.

If you are using IFS/Quality Management in the receipt process, and if you have scrapped before an analysis is created, the quantity to inspect indicated on the Receipt page will be recalculated based on the quantity available when you create a new analysis. An existing analysis will not be affected.

For inventory registered purchase parts with a Company Owned ownership type, postings are created with the debit posting type M6, Scrapping from Inventory, and the credit posting type M1, Inventory. However, postings are not created when scrapping parts with a Customer Owned ownership type. For inventory parts with Company Rental Asset ownership inventory transactions for the scrapping are created without postings, and in addition purchase transactions are created with debit posting type M94, Scrapping Non-Inventory Material and credit posting type M92, Purchase Non-Inventory Material Arrival.

For consignment handled parts (a Consignment ownership type), postings are created with debit posting type M6, Scrapping in Inventory, and the credit posting type M60, Consignment stock, the credit posting type M60, Consignment Stock, and debit posting type M61, Consignment Stock Receipt.

For detailed descriptions of all system events and posting types, refer to the document Financial Events and their Bookings.

Pages

Inspection Management
Receipt

Activity Diagrams

Manage Claim Found in Inventory
Perform Quality Inspection & Handle Discrepancies