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Nearly in all manufacturing environment there would be some or other form of rework.
I) Rework Production Order-Stock-Procured material
This scenario is executed when material which are bought out from vendor are found faulty. These materials rather sending
back to vendor for corrections are done rework in manufacturing unit itself.
For these materials, rework production order is created through which cost can be captured and debited to Vendor. These costs are
colleted on Cost center Rework and settled on cost center.
Any quantity to be scrapped can be removed from inventory and charged to profitability analysis with a special movement type
551 through Quality Processing.
Inspection is to be done on Lot generated and Materials which are found defective send to REWK Storage location as Blocked
Stock
Material received in Quality Stock from Purchase order Goods receipts and found defective which can be rework in house.
Inspection Lot Processing is over and Usage Decision is done. Quality stock is posted to "Unrestricted" stock and "Block stock"
which is to be reworked.
Creates rework order to correct defects. This order will be without reference to material so that cost will be captured on to rework
Cost center
Easy Access Path Logistics > Production > Shop Floor Control > Order > Create > Without Material CO07
Easy Access Path Logistics > Production-Process > Process Order > Create > Without Material CORO
On the Header screen, make following entries Order Text (Enter PO number and material Component Number for reference)
Now in the Component Overview check that no components are exists. Enter Component code (same manufactured material code)
with Quantity and item category as L. Enter storage location of Goods Issue. Enter Operation number to which these components
will be consumed.
Production Order for Rework is created. Observe different number range for rework production Order.
Goods Issue to Production Order
All components required for Production Order are in Inventory with required quantity Components required for Production are
issued to orderTransaction Code MB1A Movement Type 261 for Production Order reference.Enter Production Order to Issue
Goods.Goods required for Production Order are issued.
After physically completing Production Order Operation work, an operator needs to enter in the system as Operation done. This
activity is carried out to enter Confirmation of Operation in the Production Order.
Transaction Code CO11N all operations in Production Order are confirmed here.
After completing confirmation of all operations in rework order, user needs to give status to order as it is Technically Complete so
that all cost incurred on to Rework Order can be settled to Cost Center
On the Change Order Header screen, on Menu Bar go to Functions > Restrict Processing > Technically Complete.System Updates
TECO status to Rework Order
After Rework is done, material from blocked stock will be transfer to Quality stock for inspection.
Quality Inspection
This Activity is carried out for inspection of material in the Inspection lot.
Inspection Lot must have generated. Sample calculation must have done. Easy Access Path Logistic > Quality Management >
Quality Inspection > Work List > Inspection > Change (QA32)
There are three major steps to follow for Inspection Lot Processing.
Result Recording.
Defect Recording.
Usage Decision and Stock Posting.
Inspection Lot Processing is over and Usage Decision is done. Quality stock is posted to "Unrestricted" stock.
This activity you need to carried out to check rework production order cost so that the same can be debited to vendor.
Easy Access Path Accounting > Controlling > Product Cost Controlling > Product Cost by Order > Information System > Reports
for Product Cost by Order > Detailed Reports > For Orders Transaction Code KKBC_ORD
Easy Access Path Logistics > Materials Management > Purchasing > Purchase Order > Follow on functions > Logistics Invoice
Verification
On first Screen, select in Transaction "Credit Memo", enter PO Reference as P.O. No., Document date, Baseline Date for Due Date
Calculation, enter amount in amount tab Simulate the same & save the document.
When operation is completed it has to enter in the system as confirm for completion. Now in this activity out of total quantity
some quantity is yield and some quantity can be reworked is observed
Easy Access Path Logistics > Production > Shop Floor Control > Confirmation > Enter > For Operation > Time Ticket
Here define actual yield and the rework quantity and Reason for Variance
In this activity, Production planner creates Rework Order to produce finished material from defective rework able material. In this
activity defective material is consumed and finished good material is produced.
Easy Access Path Logistics > Production > Shop Floor Control > Order > Create > Without Material CO07
Now in the Component Overview check that no components are exists. Enter Component code (same manufactured material code)
with Quantity and item category as L. Enter storage location of Goods Issue. Enter Operation number to which these components
will be consumed. Release order by clicking release button and Save it.
Goods Issue to Production Order and Completion of Confirmation of Production Order same as explain above.
After Confirmation of all operations, Header material produced. This Material is posted into stock against Production Order.
Easy Access Path Logistics > Production > Shop Floor Control > Goods Movements > Goods Receipts
Quality Inspection
If you want to return processed goods to the vendor for some reason (for example, line rejections), you can use this function to
return the goods. In this case a return purchase order is created and goods are returned to the vendor with reference to the return
purchase order.
This activity is carried out when the goods are rejected on the shop floor/ Transaction code MB1A here enter the Movement Type
262, plant, storage Location, the order no, Material no and quantity. Post the document. The material issued is returned to the stores.
To determine the Cost to be debited to Vendor, due to rejection. Easy Access Path Accounting > Controlling > Product Cost
Controlling > Product Cost by Order > Information System > Reports for Product Cost by Order > Detailed Reports > For Orders
Transaction Code KKBC_ORD
On the initial screen, enter the Production Order No. and press Enter. In next screen, in menu option, Select Go to ->Cost ->
Analysis.
Return to Vendor
SAP East Access Logistics > Materials Management >Purchasing > Purchase order >Create > Vendor/supplying Plant Known
On the create purchase order screen enter the Vendor, Purchase Organization, Purchasing Group, Company Code, Material No,
quantity, Plant. Maintain the price select the condition tab at the item details and maintain the gross price, if required maintain other
conditions as required. Return purchase order is created
Once the return Purchase order is created, release the PO by transaction code ME28. With reference to this PO the material is send
back to the supplier by using through MIGO. Goods posted is reduced from the inventory stock
With reference to this document if required excise invoice can be generated and the excise entries can be taken care of by transaction
code J1IS.After that post the debit note to vendor through MIRO with reference to purchase order created.