% Scrap on Operation Affects Labor and Burden Only, Right?

[utaylor (Utah Taylor)]

@jkane , do you know if % Scrap on Operations affects only labor and burden?

I was reading the job costing tech ref guide and based on what I found I took away that the % scrap on operation only affects labor and burden.

[utaylor (Utah Taylor)]

pretty sure @Banderson answered it here, just wanted to double check before we post some costs…

Understanding "Scrap" in Kinetic

The scrap rates for the material is on the material, not the operation. See the screen shots below for a sample job of 20, with a material at 1 per with a scrap rate of 10% give a required material of 22. [image] [image] Scrap rates on the operations have to with how much labor is required. So if you add a scrap rate on your operation, it adds it to the labor time (not the material) [image] These are separated to give to the appropriate control that you need as different industries have …

[jkane (John Kane)]

Sorry, offsite today at the new company we acquired.

First off, I have not extensively tested this area yet, so I can’t say 100%. But yes, operation scrap is labor and burden. However, if you add a scrap factor, the qty for that operation is increased but it does not increase the material required to make it or subsequent operations. So, if you are looking to have material increased you need to add a scrap factor to the material.

What I really want to dive into is scrap factors on subassemblies. That will actually drive the production quantity to be higher which in turn ups the material required for the job.

Also, I would really love a way to apply a scrap percentage at the part level so every job that gets created would produce 1 more. I have not found that functionality yet if it exists.

[utaylor (Utah Taylor)]

Thanks for your input John, I really appreciate it, and I hope the new company acquisition goes smoothly for you.