I have been scouring the forums looking for haw to handle “Scrap” that is the result of a Production Order. There are many threads and NONE that seem to have the answer.
One post even listed the links to 3 other threads (all of which end with no answer)
Let me give you an example:
- we buy a product “Peanut Butter” in 10 liter canister as our raw material Item Code: PB0010
- we buy 0.5 liter jars (to make smaller containers of Peanut Butter) Item Code: PL0132
- we buy lids for the jars Item code: PL 0133
That makes up the raw materials for a BOM to make 0.5 liter jars of Peanut Butter: Item code: BK0025.
So, this BOM calls for 10 liters of Peanut Butter Item Code PB0010, but when a production order is made, it is not possible to get all 10 liters of Peanut Butter out of the canister. However all 10 liters of the Original Peanut Butter must be accounted for at the end of the run.
Typically from a 10 liter canister of Peanut Butter the manufacturing person can generate somewhere between 18 and 19 of the 0.5 liter jars of Peanut Butter to put into inventory as Item Code BK0025.
How can I account for the wasted Peanut Butter that cannot be extracted from the original 10 liter canister?
What happens to the extra 0.5 liter jars and lids that were transferred to the WIP location but NOT used because we could not get all the Peanut Butter out of the 10 liter canister? They have to accounted for somehow and made available for use the next time we have a production run.
Is it possible to make 2 separate Stock Entries of “Manufacture” type so one can go to inventory and the other to a Scrap Warehouse?
Then how can anything sent to the Scrap Warehouse be disposed of properly from an accounting point of view?
I have seen many threads that talk about a “Scrap Warehouse” or a “Scrap Management” set of docs to help with this. There is even a github issue that was supposedly “merged” in October of 2016 for this:
Someone even made up a complete set of Screenshots for this “Feature” if you look here:
Yet, after all of my searching I cannot find a single bit of information about how to use this “feature” that appears to have been added to ERPNext at some point over a year ago! There is nothing in the official ERPNext Online Manual, and nothing on the forum that actually answers this question.
I find it hard to believe that nothing exists for this. It has been a topic of this forum for more than 4 years now, and Manufacturing, is one of the top uses of ERPNext. So where is it, and exactly where do we find information on how to use it?!?
I know I am NOT the only one that wants these questions answered, and I have seen them asked in many places on the forum. However, I have yet to find answers.
If someone can point out links to answer these questions, then I am happy to be corrected on this and will gladly follow whatever instructions you can point to for this.