Scrap refers to material deemed worthless or possessing only the value of its raw material content, which may be recoverable through recycling.

Typically, scrap is acquired at the conclusion of the manufacturing process. Additionally, products may be identified as damaged or unusable due to factors like expiration, necessitating their disposal as scrap.

In BizCentric, scrap items are accounted for in designated scrap warehouses at the conclusion of the manufacturing process.

Scrap in Bill of Materials

You can update estimated scrap quantity of an item in the BOM, Scrap table. If required, you can reselect a raw-material item as scrap.

Scrap in Manufacture Entry

Once production is finished, a Finish/Manufacture Entry is generated in relation to a Production Order. It is essential to update the Valuation Rate for this item for the purpose of accounting postings.

It’s worth noting that scrap from the Bill of Materials (BOM) will only be accounted for if the Manufacture Entry is generated based on the BOM, rather than on Material Transfer. This configurability is accessible from the Manufacturing Settings.