- During manufacture of fluorescent tubes, at one stage, mercury will be injected in the process.
- After injecting mercury, if the component becomes scrap, it will be hazardous in nature.
- In normal production order execution, this will be confirmed as scrap.
- This will be fine as far as production order settlement is concerned.
- The scrap generated in the above process is a material of hazardous nature.
- As a statutory requirement an account has to be maintained for the resultant hazardous scrap material and utmost care has to be taken while disposing…
- Hazardous scrap material will be created as a material with material type HALB. Here the costing and value of the material is not of much importance.
- Hence the unit price of the material will be taken as nominal.
- This material will be used a byproduct in the BOM of the product ( like the one in below screen shot) and quantity of the material in the BOM will be nominal because at the time of master data creation it is not known how much scrap will be generated. (T Code: CS02)
A negative quantity of the component indicates by product.
- This component will be assigned to the operation in the routing in which scrap will be expected to generate and a back flush indicator will be maintained. (T Code: CA02 )
Back flush indicator is shown in the check box above.
- To avoid further complexities in planning, this material will be maintained as “ND” as MRP type in material master.
- Create the production order for the product in a normal way.
- Confirm the order operation wise.
- While confirming the operation in which byproduct is assigned, the quantity will have to be corrected at actual quantity and the scrap will be posted to stock with movement type 531 automatically by the system.
- In case there is no scrap, the component will be deleted from the confirmation.
- Since we have maintained a nominal price for the scrap material, there will not be any valuation problems.
- If at all any adjustments to be made financially, it should be carried out in the month end operations.
- This method can be used wherever scrap coming out of production is to be maintained as stock for any reason.
The above functionality can also be used in the following business processes.
- Poly urethane foam (PUF) Scrap coming out of Refrigerator manufacture.
- Low strength sulfuric acid coming out of agrochemicals manufacture.