To show how someone tracks in some detail...
Bing in the plastics industry we work on tight margins, so we track our
"off fall" (the scrap plastic ring around the part, and even what is
swept off the floor). To accomplish this, we create a part number for
each "type" of plastic and attach that to the job via a salvage material
on the BOM (to the material it is produced from). We grind the excess
plastic (including scrap) into a box roughly 48" cube. When the box is
full we weigh it and do a salvage material receipt to inventory
(typically between 900 and 1300 lbs/box). The salvage material on the
job is set up with the appropriate credit per pound to be credited to
the job. We do use sales orders to sell the "regrind" to our supplier
and they give us a credit based on it's usage (typically mixed 50/50
with new material). Using this process we get appropriate job cost and
credit based on the material used in the process and can track how much
of what kind of plastic we have sold to and purchased from our vendors.
We can also examine how the actual credit and material expense on the
job compares to the quoted expected values and modify our quoting as
needed. To us this is significant to track as we currently have well in
excess of 150,00lbs of regrind and ship it more or less daily in trucks
of roughly 40,000lbs.
The floor sweepings have to be sent to be washed and Pelletizebefore
being sent to our suppliers, but this is also tracked in a subcontract
job to allow for appropriate costing and tracking of weight sent out and
received back to compare with acceptable loss levels.
This goes a bit further than your desire I am guessing, but it shows
some of the methods that can be employed for tracing salvage materials.
Best of luck,
Aaron Hoyt
Vantage Plastics
brychanwilliams wrote:
Bing in the plastics industry we work on tight margins, so we track our
"off fall" (the scrap plastic ring around the part, and even what is
swept off the floor). To accomplish this, we create a part number for
each "type" of plastic and attach that to the job via a salvage material
on the BOM (to the material it is produced from). We grind the excess
plastic (including scrap) into a box roughly 48" cube. When the box is
full we weigh it and do a salvage material receipt to inventory
(typically between 900 and 1300 lbs/box). The salvage material on the
job is set up with the appropriate credit per pound to be credited to
the job. We do use sales orders to sell the "regrind" to our supplier
and they give us a credit based on it's usage (typically mixed 50/50
with new material). Using this process we get appropriate job cost and
credit based on the material used in the process and can track how much
of what kind of plastic we have sold to and purchased from our vendors.
We can also examine how the actual credit and material expense on the
job compares to the quoted expected values and modify our quoting as
needed. To us this is significant to track as we currently have well in
excess of 150,00lbs of regrind and ship it more or less daily in trucks
of roughly 40,000lbs.
The floor sweepings have to be sent to be washed and Pelletizebefore
being sent to our suppliers, but this is also tracked in a subcontract
job to allow for appropriate costing and tracking of weight sent out and
received back to compare with acceptable loss levels.
This goes a bit further than your desire I am guessing, but it shows
some of the methods that can be employed for tracing salvage materials.
Best of luck,
Aaron Hoyt
Vantage Plastics
brychanwilliams wrote:
>[Non-text portions of this message have been removed]
> Hi,
>
> If the quantity of chips per finished product/operation is fairly
> accurate, you could do the following but it would require a mod.
>
> As below but on the Mom, set a salvage. As standard you would have to
> manually do a transaction but a mod could backflush this off a
> material issue or operation trans. However, it would hit your job
> costs through vantage but would see the inventory trans.
>
> --- In vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>,
> Robert Brown <robertb_versa@...>
> wrote:
> >
> > Set the 'chips' parts up as standard cost, keep them qty bearing
> but non-stock & non-phantom. Don't set them up for MRP processing.
> >
> > Since they are standard cost, you can assign any cost you want (but
> that won't reduce the cost of items produced that resulted in
> the 'chips' and at a Million bucks a year, perhaps you want to do
> that).
> >
> > By making them Non-Stock, they won't be considered inventory asset.
> >
> > Kathy's point about the margins being thrown off is valid. Perhaps
> you can assign them to a sales product group that results in the
> sales to your scrap dealer passing through a seperate G/L account.
> >
> > You could do the same with product class to keep track of the part
> activity cost (whether you make them non-stock or not).
> >
> > Rob Brown
> >
> > --- On Thu, 6/26/08, Sweny, Matt <matts@...> wrote:
> > From: Sweny, Matt <matts@...>
> > Subject: RE: [Vantage] Best Practices: What is the best way to set
> up SALE of a manufacturing BYPRODUCT(turnings scrap)?
> > To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
> > Date: Thursday, June 26, 2008, 4:17 PM
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
> > Kathy, Ari, Mark
> >
> >
> >
> > Thanks for the quick reply.
> >
> >
> >
> > Yeh, we're trying to avoid misc. cash receipts, because there is
> not
> >
> > much reporting that can come from that kind of transaction (no
> customer
> >
> > link). Because we sell over a million $$ per year in this kind of
> scrap
> >
> > it can have a big impact. Mgmt also wants reporting such as; how
> much of
> >
> > this or that was sold, when, to who, how has the price changed over
> >
> > time, do we need to renegotiate or find other scrap dealers etc.
> They
> >
> > want charts too.
> >
> >
> >
> > Kathy, what type of transaction did you try that would alter
> margins? Do
> >
> > you mean "Job" margins or "Gross Profit" margin? Altering job
> margins
> >
> > would be problematic for us as well. If you mean income/profit then
> that
> >
> > is OK for us, we have created a special GL code that puts scrap
> sales as
> >
> > a reduction to "Cost of Sales"(aka cost of goods sold).
> >
> >
> >
> > Doing it this way this keeps the sale of scrap out of "Net Sales"
> on the
> >
> > financials.
> >
> >
> >
> > Lastly, much of our scrap is accumulated over time, we were hoping
> to do
> >
> > some sort of inventory transaction (need a part number for this)(so
> we
> >
> > could eliminate our excel spreadsheet logs) and then have visibility
> >
> > (qty on hand) in Vantage, so we would know when it was time to
> sell. We
> >
> > would create special part classes and Product Groups to properly
> handle
> >
> > the GL transactions based on the plant.
> >
> >
> >
> > Can a part be "Bearing Qty" with no (zero) cost? So the scrap part
> does
> >
> > not affect inventory valuation?
> >
> >
> >
> > So far, it sounds like doing a sales order is not needed to get mgmt
> >
> > data and also prevent any link to a job.
> >
> >
> >
> > Matt
> >
> >
> >
> > ____________ _________ _________ __
> >
> >
> >
> > From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On
> Behalf
> >
> > Of Kathy Hambleton
> >
> > Sent: Thursday, June 26, 2008 1:21 PM
> >
> > To: vantage@yahoogroups .com
> >
> > Subject: RE: [Vantage] Best Practices: What is the best way to set
> up
> >
> > SALE of a manufacturing BYPRODUCT(turnings scrap)?
> >
> >
> >
> > Matt,
> >
> >
> >
> > We do this outside of Vantage. We are able to sell our scrap to
> reclaim
> >
> > some of the metal content. We treat it as other income, when the
> checks
> >
> > come in we do a misc cash receipt to other income. I tried doing it
> as
> >
> > sales revenue, but it really confused our sales department and made
> our
> >
> > margins look better than they really were. It just wasn't worth the
> >
> > hassle of having to explain it over and over again. Also we don't
> >
> > reclaim our scrap every year, so some years it would show up and
> others
> >
> > it would not, again confusing the sales department and margin
> reports.
> >
> >
> >
> > Kathy
> >
> >
> >
> > Electron Energy Corporation
> >
> >
> >
> > [Sweny, Matt]
> >
> >
> >
> > We don't do this, but one method I could imagine would be to create
> >
> > part-numbers for "Chips/Scrap Aluminum," "Chips/Scrap Stainless,"
> >
> > "Chips/Scrap Iron," etc... and "receive" the byproduct into the
> system
> >
> > under the associated part-number, then sell the part-number by
> whatever
> >
> > unit-of-measure was appropriate. ..
> >
> >
> >
> > Not sure if that's practical or feasible, but in my mind, it seems
> to
> >
> > work, and you'd have something tangible against which to run
> reports.
> >
> >
> >
> > --Ari
> >
> >
> >
> > I was thinking that you were creating a by-product that gets a new
> part
> >
> > number and all.
> >
> >
> >
> > As for scrap, we just take the check from the salvage/scrap company
> and
> >
> > do a
> >
> > Cash Receipt Entry to an account number.
> >
> >
> >
> > Mark W.
> >
> >
> >
> > ____________ _________ _________ __
> >
> >
> >
> > From: Sweny, Matt [mailto:matts@modernind. com
> >
> > <mailto:matts% 40modernind. com> ]
> >
> > Sent: Thursday, June 26, :38 PM
> >
> > To: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>
> >
> > Subject: RE: [Vantage] Best Practices: What is the best way to set
> up
> >
> > SALE of a manufacturing BYPRODUCT(turnings scrap)?
> >
> >
> >
> > I have not seen any replies and thought I may resend our question:
> >
> >
> >
> > I have a Project due date that I must report to mgmt on Monday. We
> have
> >
> > a couple options on the how to do this, but wanted to see if there
> was
> >
> > any gottchas that others have experienced.
> >
> >
> >
> > Looking for any "Best Practices" .......if possible could anyone
> send
> >
> > this question to the person in your organization that is
> responsible for
> >
> > selling your "scrap" by-product and use Vantage to do it? (examples;
> >
> > turnings, borings, bar ends, solids scrap)
> >
> >
> >
> > Perhaps they have a best practice they would be willing to share.
> >
> >
> >
> > Thanks,
> >
> >
> >
> > Matt
> >
> >
> >
> > ____________ _________ _________ __
> >
> >
> >
> > From: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>
> >
> > <mailto:vantage% 40yahoogroups. com>
> >
> > [mailto:vantage@yahoogroups .com <mailto:vantage% 40yahoogroups.
> com>
> >
> > <mailto:vantage% 40yahoogroups. com> ] On
> >
> > Behalf
> >
> > Of matt.sweny
> >
> > Sent: Friday, June 20, 2008 6:03 PM
> >
> > To: vantage@yahoogroups .com <mailto:vantage% 40yahoogroups. com>
> >
> > <mailto:vantage% 40yahoogroups. com>
> >
> > Subject: [Vantage] What is the best way to set up SALE of a
> >
> > manufacturing BYPRODUCT?
> >
> >
> >
> > We are on Vantage 8.305L
> >
> >
> >
> > We are a metals related manufacturer, that produces a byproduct.
> The
> >
> > byproduct is sold to "scrap dealers". Example: mfg. operation =
> >
> > lathe, byproduct = stainless turnings(chips) .
> >
> >
> >
> > What is the best way to set up the transactions to SELL this
> >
> > BYPRODUCT?
> >
> >
> >
> > Can we do just a misc. invoice assigning the part number to the
> >
> > invoice? What about a packing slip for sale of the byproduct?
> Should
> >
> > we do a misc. packer? Do we need a sales order? (even if our scrap
> >
> > dealers do not give us PO's?)Can we track and make visible the
> >
> > inventory of the byproduct without assigning a cost?
> >
> >
> >
> > Looking to make the transaction( s) as easy and simple as possible,
> >
> > yet provide the maximum available data to managment.
> >
> >
> >
> > Matt S.
> >
> >
> >
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