Hello, my team has been asked to produce a Cost of Poor Quality metric that includes the value of parts reported as scrap in the production process. In looking at Epicor’s Knowledge Base, what I’m finding is that they state that they don’t provide this due to so many different ways of calculating scrap by end users. I’m looking to take either the quantity scrapped multiplied by a standard cost for the part number, and report this, or preferably when the job is closed, take the total job cost divided by total production (including scrap) to come up with a scrap per part value that can be just for that run. Has anyone done something like this or aware of a good approach to doing this?
The only way I know of doing this is to not Scrap the parts, but NCR them and then DMR them. Not ideal at all, but it would allow you to capture accurate costs for “scrapped” product. When you enter a scrap quantity, it does not remove the costs from the job.
Edit: actually, this would not be terrible because you could create a Reason Code that points to a specific GL Account and then all of the scrap value would be in that account. All you would have to do is create a report to pull that account to get the value.
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