Report Scrap for Credit

Explanation

Inspection results can be entered for inventory registered purchase 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. For non-inventory parts or no-number parts the results have to be entered to complete the receipt. Use of serial numbers and pallets affect the handling.

You can enter the inspection results via Purchase Order Receipt (and some related tabs) or Inspection Management, both of which lead to the same dialog box. 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 the supplier.

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 tab 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 Purchase Order Receipt/Single and specify the scrapping cause in advance by right-clicking and then clicking Scrap Receipt Lines. A dialog box opens and you can specify a scrapping cause and type for all selected lines. When this is completed, the dialog box for entering the inspection results opens with the scrapping cause and type specified per serial number already entered in the proper tab. You can remove a line that is selected by mistake. It is also possible to change the scrapping cause on a single line. In Purchase Order Receipt/Pallet you can do the same regarding several pallets that will be scrapped.

When handling pallets, you also must indicate, by entering the pallet ID, from which pallet you have returned parts. Note that a pallet must be moved into a pallet quality location before you are able to return any parts.

If for some reason you 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 Register Purchase Order Arrivals window.
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.
Pallets must be located in a pallet quality location.
The scrapping cause must have been entered in the Scrapping Causes window.

System Effects

If an outside operation item is scrapped, the quantity remaining for the operation after the outside operation is decreased by the scrapped quantity. This is displayed in Shop Order/Operation. The operation history transaction is updated. The Operation Scrapped field is updated with the quantity scrapped in Shop Order/Detail.
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 Purchase Order Receipt window 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, postings are created with the debit posting type M14, Scrapped for Credit/Returned Goods In 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 M91, Non-Inventory Receipt with PO Not-Invoiced, 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.
If purchase charges where booked separately at purchase order arrival, then the charges will be booked separately when parts are scrapped for credit using the debit posting type M196 - Return/Scrap of Charges.
For detailed descriptions of all system events and posting types, see the document Financial Events and their Bookings.

Window

Purchase Order Receipt
Inspection Management

Related Window Descriptions

Procedure

Report inspection results and scrap parts:

Either populate or query for the desired order number. If you have several receipts for an order, you also must select the correct receipt number. In the Purchase Order Receipt window and related tabs, do this by using the Order No list.
Select the desired line.
Right-click and then click Register Inspection Results. The Register Result dialog box opens.
Enter the approved quantity in the Approve field. You can choose to specify this in purchase unit or in inventory unit. The corresponding field reflects the quantity in the other unit. Click Apply to save this entry.
Select the Scrap tab and click New.
Enter the quantity scrapped. You can specify this either in purchase unit or in inventory unit. The corresponding column reflects the quantity in the other unit. When you are scrapping serial numbered parts, the quantity returned should always be 1.
Specify a scrapping cause. Either enter an existing short code or search for it by clicking List.
In the Scrap Type list, click Scrap No Credit.
For inventory registered purchase parts, specify the location number of the desired warehouse by using the List of Values. You can only choose from among the current locations for this receipt line. If you are scrapping a specific serial numbered part, a part from a particular lot or batch, or a part with another revision number, search for the proper line by using the List of Values or enter the identity in the proper field. This column is not used in connection with non-inventory registered purchase parts or no-number parts.
For pallet-handled parts, specify from which pallet you are scrapping parts by indicating a pallet ID.
If you are scrapping parts and want to specify several scrapping causes, enter new lines by clicking New.
Click OK.
If you are scrapping parts for a receipt line that has been reopened after it has been received into stock, and the part is serial tracked at receipt and issue but not serial tracked in inventory, then a dialog box appears where the serial numbers to be returned should be identified. Click OK when completed.

Specify the scrapping cause for several lines or pallets and then enter the inspection results:

Either populate or query for the desired order number. If you have several receipts for an order you also must select the correct receipt number. In the Purchase Order Receipt window and related tabs, do this by using the Order No list.
Select the Purchase Order Receipt/Single or the Purchase Order Receipt/Pallet tab.
Select the desired lines.
Right-click and then click Scrap Receipt Lines. The Register Result dialog box is displayed. Indicate the scrapping cause by using the List of Values. In the Scrap Type list, click Scrap Credit. Click OK.
The Register Result dialog box automatically opens. The scrapping cause is indicated on each line and the quantity scrapped is automatically filled in. If too many lines are displayed, select a line and remove it by clicking Remove.
Click OK.
If you are scrapping parts for a receipt line that has been reopened after it has been received into stock, and the part is serial tracked at receipt and issue, but not serial tracked in inventory, then a dialog box appears where the serial numbers to be returned should be identified. Click OK when completed.