Production Scrap Management
Scrap means waste that either has no economic value or only the value of its basic material content recoverable through recycling.
Scrap is generally produced at the end of the manufacture process. Also you can find some products that are damaged or that are unusable due to expiry or for some other reason, which needs to be scraped.
In iVendNext, at the end of manufacturing process, scrap items are accounted in the scrap warehouses.
Scrap Warehouse
Set the Default Scrap Warehouse in Manufacturing Settings. Each new Work Order takes it into its Scrap Warehouse field. You can change the Scrap Warehouse on a Work Order. The Work Order's Scrap Warehouse is used for scrap that a Job Card records. For a scrap row that you add by hand on a Stock Entry, set the Target Warehouse yourself.
Scrap in Manufacture Entry
When production is completed, you make a Stock Entry against the Work Order. Use the Stock Entry Type Kitting, which is the type with the purpose Manufacture. Add the scrap row with only a Target Warehouse, and tick Is Scrap Item on that row. Set the row's Target Warehouse to your scrap warehouse. Ensure that Valuation Rate is updated for the scrap item for the accounts posting purposes.
The cost of the scrap row is taken out of the cost of the finished Item.