Scrap Entry
Write off damaged, rejected, or end-of-life stock with a clear reason — and optionally record any recoverable scrap that comes out of the disassembly.
Scrap Entry#
A Scrap Entry (transaction type SCR) records stock being written off as scrap — material that cannot be used, sold, or returned — and optionally records any recoverable scrap material that comes out of the disassembly. It is posted from the Manufacturing sidebar but affects inventory like any other stock entry.
When to use scrap#
- Production scrap — material consumed during manufacturing but not turned into finished goods
- Quality failures — goods that failed inspection and must be disposed of
- End-of-life stock — obsolete material that has been written off commercially
- Damaged beyond repair — breakages from handling or storage
Prefer Scrap Entry over a negative Stock Adjustment when the reason is "this material is scrap." Scrap Entry creates a clear audit trail with the cause; a negative adjustment is more generic.
The two sections#
A Scrap Entry has two sections:
| Section | Direction | Required | Ownership | Typical use |
|---|---|---|---|---|
| Items Being Scrapped | Outward (stock leaves) | Yes | Follows header | The items you are writing off |
| Resulting Scrap | Inward (stock arrives) | Optional | Always own | Recoverable scrap material — e.g., 25 kg of steel scrap recovered from a disassembly |
You enter every quantity as a positive number. Neriyam applies the direction (inward/outward) automatically based on the section.
Items Being Scrapped#
The items being written off as scrap. Direction is outward; ownership matches the header.
Resulting Scrap#
Scrap material recovered from the disassembly that you keep — for example, you scrap a defective machine and recover 25 kg of steel scrap. This section is optional — leave it empty if there is no recoverable scrap.
When used, items in this section must have item type SCRAP. The line item picker filters to scrap-typed items so non-matching items are not selectable. The section is always own, even when the upper section was for a customer — recovered scrap stays with you.
Both sections always render on the form. Only fill Resulting Scrap when there is real recoverable material; otherwise leave it empty and the entry will submit cleanly with just the write-off.
Creating a Scrap Entry#
- Navigate to Manufacturing › Scrap Entry.
- Click + New Scrap Entry.
- Set the header — posting date, "Scrapping for" (Own or Customer X), reason.
- Add lines to Items Being Scrapped.
- (Optional) Add lines to Resulting Scrap if any recoverable material comes out of the disassembly.
- Click Save as Draft to save the entry — you land on the detail page.
- On the detail page, review, edit if needed, then click Submit for Approval to post it to the stock ledger.
The create page only has Cancel and Save as Draft buttons; the Submit for Approval action lives on the detail page once the draft exists.
Header fields#
| Field | Required | Notes |
|---|---|---|
| Posting Date | Yes | Effective date |
| Scrapping for | Yes (radio) | Own or Customer X — sets ownership of items being scrapped. Resulting Scrap stays own regardless. |
| Reference / Work Order ID | No | Free text — your work order or run number |
| Reason | Strongly recommended | The cause of the scrap. Goes into the ledger as the audit trail. |
When Scrapping for: Customer X is selected, every line in Items Being Scrapped is automatically tagged with that customer as owner. Per-line ownership overrides are not available.
Line fields (per section)#
| Field | Required | Notes |
|---|---|---|
| Item | Yes | Stockable items only. The Resulting Scrap picker further filters to items with type SCRAP. |
| Warehouse | Yes | The Items Being Scrapped picker defaults to the organization's Default Scrap Warehouse if set. |
| Quantity | Yes | Positive number. The system applies inward/outward direction based on the section. |
Valuation impact#
Own stock (Items Being Scrapped)#
Scrap consumes at the current moving-average cost of that item in that warehouse. Balance quantity drops; balance value drops by qty × currentAvgCost. The moving-average itself stays the same.
Customer stock (Items Being Scrapped on a customer run)#
The quantity drops but there is no valuation impact on your books — customer material is not your asset.
Resulting Scrap#
Recovered scrap is recorded as an inward movement at the moving-average cost of the SCRAP-typed item in the receiving warehouse, just like any other inward stock movement.
For scrap of customer-supplied material, the customer usually needs to be informed (or consulted beforehand, depending on the contract). The entry records what happened on your side; commercial treatment of the loss is out of scope for this version.
Statuses#
D (Draft) → S (Submitted) → optionally C (Cancelled). No approval step.
Cancelling a Scrap Entry#
Cancellation posts a reversal — items being scrapped flow back in, and any recovered scrap flows back out. Both the original and the reversal stay on the ledger.
If a downstream document references this Scrap Entry's lines, cancellation is blocked. You will see an error naming the dependent document(s); cancel those first, then come back to cancel the Scrap Entry.
Cancellation requires INVENTORY.CANCEL_STOCK_ENTRIES permission and a reason.
Typical scenarios#
Offcuts from production#
If the offcuts are too small to reuse, scrap them at the shop-floor warehouse. Reason: "Offcuts from SO-2026-00123 production run".
QC reject#
Stock that failed final inspection. If it came in through a GRN, consider a Purchase Return instead — that preserves the supplier link. If the defect is ours (damaged during handling), scrap it.
Disassembly with recoverable steel scrap#
You scrap a 100 kg defective frame and recover 25 kg of steel scrap. Use Items Being Scrapped for the frame (1 unit) and Resulting Scrap for the steel scrap (25 kg). The frame's value is written off; the recovered scrap comes in at its moving-average cost.
Obsolete inventory write-down#
For large year-end write-offs, pair the entry with a clear reason citing management authorisation.
List page#
- Columns: Code/Ref, Posting Date, Item Count, Total Qty, Status
- Filter by date, status
- Row actions: View, Submit, Cancel
Permissions#
| Action | Permission |
|---|---|
| View | INVENTORY.VIEW_STOCK_ENTRIES or MANUFACTURING.VIEW_PRODUCTION |
| Create, submit, cancel | MANUFACTURING.MANAGE_PRODUCTION |
Related#
- Stock Adjustment — the generic alternative when reason is not "scrap"
- Stock Transfer — moving to a scrap warehouse before writing off
- Stock valuation — how scrap affects cost basis
- Production Entry — related upstream for production scrap
FAQ#
Why is Scrap Entry in Manufacturing, not Inventory? The most common trigger for scrap is production. Keeping the form with production entries means the operators who create production records also create the matching scrap records in the same module.
Do I have to fill the Resulting Scrap section? No. It is optional. Leave it empty when there is no recoverable scrap; submit the entry as a pure write-off.
Can I scrap a batch partially? Yes — enter the specific batch number and scrap qty. The remainder stays on hand.
How do I show scrap in reports?
Filter the Stock Ledger by transaction type SCR and a date range.
Validation rules#
A Scrap entry (SCR) can only be submitted when these rules are met:
Item requirements
- Items in Items Being Scrapped must be stockable (
is_stockable = true). The picker filters to stockable items upfront. - Items in Resulting Scrap (when used) must be stockable AND have item type
SCRAP. The picker filters by both flags upfront, and the API rejects mismatches at line save and at submit.
Header
- Posting date is required.
- "Scrapping for" is required (Own or Customer). When Customer is selected, the customer is required and applies to ALL Items-Being-Scrapped lines — at most one customer per Scrap Entry.
Sections
- Items Being Scrapped is required (at least one line).
- Resulting Scrap is optional — entries with no recoverable scrap are valid.
Quantity
- Always positive in the form. The system applies signs by section role on submit (Items Being Scrapped become outward, Resulting Scrap becomes inward).
Ownership
- Items Being Scrapped follow the header (Own or single Customer).
- Resulting Scrap is always own, even on a customer run — what we recover stays with us.
Approval state
- The customer (when set) and all items must be Approved to be selectable in the picker.
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