Scrap damaged stock

Damage is usually found while handling goods, not later:

1. Open the receipt, delivery or internal transfer.
2. Click the (Actions) icon and choose Scrap.
3. Select the product and quantity, tag the reason, and adjust the locations if needed; a Lot/Serial field appears for tracked products.
4. Click Scrap Products.

A Scraps smart button then appears on the operation, listing everything scrapped from it — which is how a damaged-on-arrival pane stays attached to the supplier receipt that brought it.

The Scrap Reason field takes one or more tags, and the list starts empty — define the vocabulary once and hold to it: breakage at handling versus at the cutting table, machining error, coating defect, transport damage, supplier defect, a site re-measure that orphaned finished pieces. The reason tags are what turn the scrap list from a confession into a report: filtered by tag and by month, it answers whether the supplier or the handling is at fault — and the list's pivot and graph views chart exactly that.

By default everything scraps into Inventory adjustment, mixing breakage with count corrections. If scrapped goods must be visible as their own line — and reach the profit-and-loss report through their own account — give them a location: enable Storage Locations, go to Inventory › Configuration › Warehouse Management › Locations, remove the Internal filter, and create one with Location Type = Inventory Loss and a Loss Account. Pick it as the Scrap Location when scrapping — the stock move then writes to that account instead of the general adjustment one.

A warning says the location does not hold that quantity — the source location is wrong, or the count already drifted. Confirming anyway drives the location negative; better to pick the location the goods are actually in, or fix the count first.

A scrapped item was needed by a job in production — if Replenish Quantities was ticked, the replacement order is already on the replenishment report; if not, raise it there now. The scrap itself does not warn the job.

The scrap does not show in the loss accounts — it went to the default Inventory adjustment location; only a location with its own Loss Account separates breakage from count corrections.

Somebody scrapped the wrong thing — there is no unscrap button: move the goods back with an internal transfer from the scrap location, or an inventory adjustment, and let the wrong scrap order stand as history.