Scrap during manufacturing

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Introduction

Scrapping occurs when a component or finished product is damaged, defective, or unusable during the manufacturing process. In Odoo, scrapping ensures that such items are:

  • Removed from available inventory
  • Tracked for cost analysis and waste control
  • Moved to the virtual “Virtual Locations/Scrap” (not a physical stock location)

This helps manufacturers analyze losses, identify process inefficiencies, and maintain accurate inventory records.

Scrap during manufacturing

 

During the manufacturing process, scrapping components or finished products may be necessary when items are damaged, defective, or no longer usable.

 

Tracking scrapped materials helps manufacturers monitor waste, identify process issues, and account for production costs.

 

In Odoo, scrapped items are removed from physical inventory and moved to a virtual location called Virtual Locations/Scrap. This location is not a physical space it is a way to log and track losses without affecting real stock levels.

 

How to Scrap from the Manufacturing App

  1. Navigate to Manufacturing → Operations → Manufacturing Orders.
  2. Select the MO where the item needs to be scrapped.
  3. Click the ⚙️ Actions button → Select Scrap.
  4. In the Scrap Products pop-up:
    • Product: Select the component or finished product.
    • Quantity: Enter the quantity to scrap.
    • Source Location: Defaults to pre-production location.
    • Scrap Location: Defaults to Virtual Locations/Scrap.
    • Enable “Replenish Scrapped Quantities” if a replacement picking should be created.
  5. Click Scrap Products to confirm.

Tip

 

Scrap orders can be viewed by navigating to Inventory Operations Scrap. Each scrap order shows the date and time the order was created, along with the product and quantity that was scrapped.

 

To view the total quantity of each item scrapped, navigate to Inventory Configuration Locations, then remove the Internal filter from the Search… bar to display all virtual locations. From the list, select the Virtual Locations/Scrap location.

 

Navigate to the scrap window

Scrapping can be done in either the Manufacturing app or the Shop Floor module, depending on the task.

 

Manufacturing app allows:

  • Scrapping finished products (only if the MO is in the Done stage).
  • Scrapping components (while the MO is in the Draft or Confirmed stage).

Shop Floor allows:

  • Scrapping only components.

Manufacturing app

To scrap a product from the Manufacturing app, go to Manufacturing Operations Manufacturing Orders and select the desired MO.

On the MO, click the  (Actions) icon, then choose Scrap from the drop-down menu.

 

Shop Floor

 

In Shop Floor, only components can be scrapped. Navigate to the desired MO card, and then tap the  (Actions) icon and in the What do you want to do? pop-up window, select Scrap.

 

Scrap pop-up window

 

After opening the Scrap Products pop-up window using one of the methods detailed above, select the component or finished product being scrapped, from the Product drop-down menu.

 

In the Quantity field, enter the quantity being scrapped.

 

By default, the Source Location field is set to the warehouse’s pre-production location, while the Scrap Location field is set to the Virtual Locations/Scrap location. If either the source or scrap location should be changed, select a different location from their respective drop-down menus.

 

Enable the Replenish Scrapped Quantities checkbox if a picking order should be created to replace the scrapped component upon confirmation of the scrap order. This option should only be enabled for warehouses with two-step or three-step manufacturing enabled, since components are not picked as part of the one-step manufacturing process.

 

After filling out the Scrap Products pop-up window, click the Scrap Products button. After one or more scrap orders have been created, a Scraps smart button appears at the top of the screen. Click it to view a list of all scrap orders for the MO.

 

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