Scrap process in SAP S4 HANA

Scrap is material that does not conform to quality standards and is not reworked. You can plan the scrap that is expected to be produced in the Logistics master data (in %). Material requirements can be increased or reduced depending on the amount of scrap.
Assembly scrap
- maintain in MRP1 view od the material master.
- Increases the requirements of components
- Increases the requirement of a component or all components of an assembly, and thus increases the material costs.
Component scrap
- maintain in MRP4 or in BOM
- Increases the requirements of specific components
Operation scrap
- maintain in BOM or Routing with net indicator
- Reduces the quantity of subsequent operations
- Reduces the quantity of subsequent operations and thus reduces production costs.

by Ramana Katari

For variance splitting please go through the following link

[ Ссылка ]

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