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  Calculation of Assembly Scrap (PPM, R/3 RTO)

Use

If you plan in SAP APO on the basis of production process models (PPM) or R/3 runtime objects (R/3 RTO), the system can take account of assembly scrap for a product produced in-house in procurement planning. The assembly scrap indicates how much scrap arises during production and is determined by the manufacturing method used. If scrap is produced, a larger quantity of the product has to be produced to achieve the required yield. The system corrects the quantity automatically in the procurement quantity calculation or when an order is created manually. The system calculates the procurement quantity to be produced using the desired yield and the assembly scrap as a percentage according to the following formula:

Procurement Quantity = Yield x 100 % / (100 % - Scrap in %)

When the system increases the procurement quantity, it also increases the following accordingly:

Prerequisites

To allow the system to consider the assembly scrap, you need to have entered the assembly scrap as a percentage in the location product master on the Lot Size tab page.

Example

For an example, see Scrap Calculation (PPM, R/3 RTO)