ERPNext Manufacturing
What is Scrap in Manufacturing?
- Scrap in Manufacturing
- Scrap in ERPNext Manufacturing tracks material lost during production, adding scrap items to a designated scrap warehouse and adjusting the finished goods cost.
Defining Scrap in BOMs
In the BOM, add a Scrap Items table with the scrap item, expected quantity, and rate. When a Work Order is completed and a Manufacture Stock Entry is made, ERPNext transfers the scrap quantity to the scrap warehouse automatically.
Scrap Valuation and Recovery
Scrap value can be set to reduce the finished goods cost. If scrap has resale value, record it at its recoverable amount; ERPNext credits this to the manufacturing account, lowering the net cost per unit produced.
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Related Terms
Work Order
A Work Order in ERPNext authorises the production of a specific quantity of a fi…
Bill of Materials (BOM)
A Bill of Materials (BOM) in ERPNext is a structured list of raw materials, comp…
Stock Entry
A Stock Entry in ERPNext records any internal movement of stock — receipts, issu…
Warehouse
A Warehouse in ERPNext is a storage location where stock is maintained, supporti…
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