4:18 AM
Scrapping / Write Off
In the standard SAP
definition, postings for Scrapping/ Write-off in inventory management are made,
if a material can no longer be used.
Scrapping / write-off may be due to when:
·
The
quality has been reduced due to prolong storage.
·
Inventory
has become out of date
·
The
material was damaged
·
Product
discontinuation
·
Change
in specification
At MyCompany, the SAP
scrapping or write-off function is used to write-off loss in transit and for
obsolete or scrapped stocks.
Scenarios
|
Remarks
|
Write-off rejected, obsolete or damaged stock
|
Periodic clearing of ‘old’ or damaged stocks
from the stores
|
Write-off transit loss
|
This is applicable for the materials that are
lost in transit
|
SAP Recommended Process: Scrapping / Write Off
Upon identification of the rejected, obsolete
stocks, they are transferred to the Rejected Warehouse through transfer posting within
the plant.
A standard listing of the to-be-scrapped
materials at the Rejected Warehouse, will be printed for stock to be written off.
Approval on the listing is obtained from the concerned authorities.
Once the approval is obtained, the scrapping
process will be carried in the system using relevant movement type, at the
Rejected Area. A service order will be created if the scrapping services are to
be obtained from a vendor, against which the service charges will be recorded.
Note:
When goods are scrapped they are not reflected in the system as part of the
inventory. The scrapped material will be physically moved from the Rejected
Area to the Vendor Scrap Area (not defined in the system). QC can destroy the
scrap material when needed.
1 comment
Definitely, supply chain mangagement is difficult task to perform and keep the records updates with all products , especially when you are running a big 3PL warehousing .I agree with your points, you have mentioned.
Post a Comment