Report scrap
Scrap is finished units lost during the build, reported against the step that lost them.
What scrap counts
Scrap is counted in units of the thing you are building, not in components. Five scrapped on a build of 100 means ninety-five are still to be made.
The components inside those five stay consumed. They were used, and nothing returns them to stock.
Why against a step
Report scrap from the step where the loss happened, so scrap totals read per step as well as per build.
Reporting it
From the step, report the quantity lost and say why. Where your company has configured scrap reason codes, pick one alongside the note.
You cannot scrap more than the build still has unaccounted for: the ordered quantity, less what has been received, less what was already scrapped.
What it does to the build
| Output | The scrapped quantity comes off what is still outstanding |
| Material | Untouched. No stock moves and no release changes |
| Cost | Stays with the build. Those components were paid for and are charged to it |
| Step | The step's own scrap total goes up, so yield reads per step |
Scrap reduces what is left to build
A build of 100 with 10 scrapped needs 90 more units to be complete. It is not a shortage of parts. It is output that will never arrive.
Scrap versus a write-off
- Scrap is units of the build destroyed at a step. Reported here.
- A write-off is component stock that is unusable but was never consumed by a build. That is a separate release from the material screen.
- A bad issue is the wrong parts leaving the stockroom. Nothing was destroyed, so reverse it on its release.
Reporting a bad issue as scrap charges the build for units it never lost.
After completion
You can report scrap after an order is completed.
You cannot report scrap after an order is closed. See Complete and close.