Value Add surplus

When a Value Add product is fabricated, there can be surplus. Surplus is an excess of raw material or other by-products of the fabrication process. Surplus may be returned by either your internal processing department or your external service vendor. When you receive the finished product, you can enter the surplus material in to the system as a reduction to the cost of the finished product. You can enter the surplus in VA Receipt of Inventory Entry or Purchase Receipt of Inventory Entry. The option you use depends on whether the fabrication was done internally or by an external vendor.