Key Information

There are several key pieces of information in each product structure:

·     Quantity per batch.  Identifies the number of each component required to make one batch of the parent items.  The batch size is defined on the Part Master File.  For companies that do not use batches, the batch quantity is one.

·     Scrap factor.  Identifies the scrap that should be planned for this component at this level in the bill of material.  The scrap factor (expressed as a percentage) is used to adjust the quantity per batch when component requirements are calculated.  A scrap factor other than zero increases the standard amount of material used to make a product, thereby inflating the standard cost of that product.  To avoid accounting for scrap twice, the scrap reporting option for a part on the Part Master Description screen is typically set to 1 (for no scrap accounting) or 3 (for parent scrap expense only) when non-zero scrap factors are used on the bill of materials.  For more information about scrap reporting, refer to the Inventory Accounting User Manual.

      A separate data element, called Yield Factor, is stored for each item on the Part Master File (on the Control screen).  For more information about how these elements are used, see the Production Planning and Scheduling key concept. 

·     Usage code.  Identifies whether the component is produced or consumed during the production process.  By-products would be produced in the manufacturing process, as regular components are consumed.

·     Effectivity dates.  Identifies the date on which each component comes into effect in the product structure or goes out of effect.  For example, as of June 1, component D might be replaced in the above product structure by component F.  Component D would be given an out-effectivity date of May 31.  Component F would be given an in-effectivity date of June 1.