An item scrapped in the first operation may have a lower cost than one scrapped on receipt. It will not have the accumulated labor, burden, and additional material costs that accrue during subsequent operations.

Repetitive Scrap Transaction (18.18) reports scrap at the item’s accumulated cost through the operation where it is scrapped. The system uses the standard cost created by the most recent use of Operation Cost Calculation (14.13.17). However, if no operation costs exist for the item/ routing/cost set, Repetitive Scrap Transaction automatically rolls up and totals the material, labor, burden, and subcontract costs by operation. It also does this for scrap reported for alternate BOMs/routings not included in Operation Cost Calculation.

The item cost by operation can be reviewed using the Operation Cost Browse, (14.13.18) or the Operation Cost Report (14.13.19). After the scrap transaction is recorded, the scrap cost can be verified using the Repetitive Operations Accounting Report (18.4.10). Repetitive Scrap Transaction debits scrap and credits WIP for the operation cost multiplied by the quantity scrapped.