Scrap Reporting in Sage X3


Hi all, 

I'm new to Sage X3 and to Sage City - started at a new company recently and came from an Infor M3 and SAP world in my previous company.  I've a good understanding of systems and know my way around generally.

New Co. - like many Co's - has not really embraced or maintained their ERP and runs a lot along side on Excel ... my aim is to run X3 for everything it can and be more systemised.

Lots of things to solve, the one for today is - How to complete Scrap bookings and analysis in X3?  For example, have a WO for 100 pieces, we made 98 good, 2 scrap - 1 was broken and 1 out of tolerance.  I'm used to be able to enter those details into the ERP and get the analysis accordingly.

I've watched various videos on the MRP Process, WO process, Production Reporting, Quality Management and not of them touch the subject of scrap reporting.  The closest I got was that when one said when the WO is reported that, using my example, you would report the 98 good, the WO would have the materials for the 100 and that would back flush the materials for 100.  So correctly you end up consuming the right amount of materials, and end up with the right amount of good parts in stock, but do not have any analysis on why the 2 were scrapped and it looks like the over material consumption compared to standard for the good parts made shows up as a Material / WO Variance.

How are other people doing this?  Have I missed something?

Thanks in advance.

  • 0

    Hi Paul,

    It depends on how you want to see the cost of the scrap in your accounting and on your valuation method.
    You have basically 3 strategies:

    1. Over-consumption: as mentioned in your text you can consumed components for 100 while entering into stock 'only' 98. As a result, you are able to capture the variance in your stock value (if using average costing of FIFO) or in the value not absorded (AMTDEV field if using standard costing). Then you can post AMTDEV on any account such as profit and loss.
    2. Entering the 'incorrect' unit in stock. So in your example, it would be consumming components for 100 while entering into stock 98 in status A and 2 units in status R. In that case, the stock value include the cost of the defect unit but when trashing the 2 Rejected units (via a misc. issue), you will be ablze to capture the cost of the non quality on your GL. This method would ensure the Accepted units have their unit cost not affected by the scrap that occured upon the production process.
    3. Entering the 'rejected quantities' upon time tracking. In your example, it would start as in point 1: consumed components for 100 while entering into stock 'only' 98. But upon the time tracking of the operation that lead to scrap, you can enter the Total actual quantity (100) and the Actual rejected quantity (2). You can even assign a reject message for each unit scrap for analysis purpose. As a result, the cost of the scrap will be identified (and can be posted on a dedicated account) but this rejected cost will not be included in the 98 units received into stock!

  • 0 in reply to Julien Patureau

    Thanks Julien, I think we are using option 2 at the moment, but that doesn't give me the analysis.  I will explore further and look at option 3 as that appears to keep everyone happy :-)   Thanks for the great answer !

  • 0 in reply to Paul Race

    You might need to combine option 2 (for the unit out of tolerance with having maybe a new automatic journal related to misc. issue to post this cost in your GL on the right account) with option 3 (for the 1 unit that was broken and ensure the WIP auto journal post the scrap cost on the right account).

  • 0 in reply to Julien Patureau

    Hi Julien, The scrap posting in the WIP automatic journal Line 16 is configured to Loss Modifier of the Site (index 5). We understand this is the modifier points to the carry forward GL code for the Year end processing. Not sure if we have to change this.

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