I’m trying to figure out why Epicor has a “Scrap Qty” on End Production Activity, if that cost does not flow to the reason code it’s associated with. I did a test in our third DB. The only way I’ve been able to get the cost off the job and to a scrap GL is through Nonconformance and DMR Processing. What is the purpose of that scrap field in “End Production Activity”?
Below is what I did.
Started and Ended a Production Activity in MES. Completed 8, Scrapped 2.
From a financial flow standpoint you are correct. Scrapping quantities leaves the associated costs in WIP until you close that job where they would then flush to manufacturing variance.
On a Nonconformance, you can choose to redirect those costs elsewhere. You’ll see the amounts move from WIP to Inspection Pending to DMR Pending to DMR Write Off.
Scrap soaks the job for the lost cost. Nonconformance redirects it.
Chad,
Thanks for your reply. I’m glad my suspensions were correct. I just find it odd that Epicor has “Scrap” reason codes that allows it to be tied to a GL Control, however no financial transactions flow to those GL accounts tied to the Reason Codes through a “End Production Activity” Scrap Qty.
The Scrap is there so you can record material that was used but could not be fixed. As @Chad_Smith said, it will hit the GL once WIP has been captured. You will not see the impact until the end.
