Scrap that is expected to occur in an operation during production.
Operation scrap is used for objects such as valuable materials, to reduce the planned input quantities in follow-up operations and to calculate the precise amount of assembly scrap.
You can display the unplanned operation scrap of the routing in the variance category scrap variances at period-end closing in Product Cost by Order and Product Cost by Period.
You can enter operation scrap (in %) in the routing and in the BOM. The operation scrap entered in the routing refers to the activity quantity consumed, while the operation scrap entered in the BOM refers to the material quantity used. In this case, the net indicator must be turned on.
If you only enter operation scrap in the routing of the costed material (and not the BOM), the costing lot size is reduced by this percentage.
If you enter the operation scrap in the routing and schedule the routing, the system calculates a percentage for assembly scrap and then writes this to the material master record.
If operation scrap is entered in the BOM, the planned input (not the output quantity) is increased accordingly, and any assembly scrap is reduced. For material requirements planning to include operation scrap, you have to maintain it in the BOM.
If you enter operation scrap for a component in the BOM, this entry refers to the quantity to be processed of an operation of this component, and replaces any assembly scrap entered in the material master.
If no operation scrap has been maintained in the BOM, the system uses the assembly scrap from the material master.
If operation scrap has been entered in the BOM, the system ignores the assembly scrap. If, for example, a material appears in an assembly for which assembly scrap has been entered, the system ignores the assembly scrap and uses the operation scrap from the BOM. The operation scrap in the BOM overrides the assembly scrap in the material master.
If you enter operation scrap in the BOM, you must set the Net indicator at the same time. The Net indicator controls the calculation of the operation scrap based on the net input quantity (without assembly scrap).
Operation Scrap in the BOM
In the BOM for the finished product, an operation scrap of 10% has been entered for raw material X. In the BOM for the semifinished product, an operation scrap of 10% has been entered. The input quantities for raw materials C and X are increased by 10%.
For more information, see the following sections in the SAP Library: