How to handle Scrap items in Odoo Manufacturing

Odoo 16 Manufacturing module provides efficient management and creation of scrap product data. When a product fails to meet quality standards, is damaged beyond repair, or exceeds its expiry date, it must be turned into scrap, resulting in its removal from the stock. This removal should be recorded for report generation.

To view and remove products from the stock, the Scrap option can be selected from the Operations tab. The list of scrap orders includes details such as Reference, Date of conversion to scrap, Product name, Quantity with Unit of Measure, Source Location, Scrap Location, Company name, and Scrap Status.

Operations => Scrap
Scrap orders in odoo

To create new scrap order click on the New button.

Scrap orders creation

Product: Choose the product that you want to convert into scrap from this field.

Quantity: Specify the quantity of the product that will be removed from stock, along with the unit of measure.

Source Location: The location from where the product is being removed.

Scrap Location: The location from where the product will be taken after removal from stock. By default, the scrap location is set as a virtual location.

Source Document: Insert any documents related to the removal of the product in this field.

Company: Provide the name of the company submitting the stock removal draft.

Save the scrap order and validate. Once the order is validated, you can view the movement of the product from stock by selecting the Product Moves option.

You also have the option to scrap product components before initiating a manufacturing order.

Operations => Manufacturing Order

Open any manufacturing order from the list displayed.

Manufacturing orders

By selecting the SCRAP button, a scrap window will appear.

Scrap orders creation from manufacturing

Enter the details of the product or component that you need to remove from stock, the quantity, the source location from where the product or component is taken, and the destination location where the product will be transferred.

Operations => Work Orders
Work orders

You can also perform the same action from the work orders by selecting the tablet view option from the Work Orders dashboard.

Scrap orders in odoo

To access the scrap option, click on the menu button located on the left side, which will display various options, from which you can choose the scrap option.

A scrap window will appear to enter the details of the component, the source location, and the scrap location.

After adding the details, click on Done and the corresponding scrap orders will be generated.

ERP implementation