Production Scrap Management

Production Scrap Management

Scrap is defined as garbage that is either unusable or has merely the value of its raw materials, which can be recovered by recycling.

Typically, scrap is obtained at the conclusion of the manufacturing process. Additionally, there are some things that need to be scraped because they are broken, past their expiration date, or for another reason.

At the conclusion of the manufacturing process, ERPNext accounts for scrap products in the scrap warehouses.

Scrap in Bill of Materials

The BOM, Scrap table allows you to adjust an item's predicted scrap quantity. You can choose an item from a raw material again if necessary.

Scrap in Manufacture Entry A Finish / Manufacturing Entry is created against a Production Order once production is complete. This entry retrieves a scrap item from the Item table and updates only the Target Warehouse for it. Make sure the valuation rate is changed for this item in order to properly post the accounts.

Only when a Manufacturing Entry is generated based on a BOM and not a Material Transfer will scrap from the BOM be effective. This can be customized in Manufacturing Settings.