Specifies the percentage of the item that you expect to be scrapped in the production process. It is used to calculate unit prices and net requirements.

If the item is a parent, then the scrap percentage represents scrapped output before putting away in inventory. It the item is a component, then the scrap percentage represents scrapped consumption, when picking from inventory.

If you define a scrap percentage for a component item, it means that more components will be withdrawn from inventory than the production order calls for.

Note
Scrap defined on component items increases the quantity picked for consumption. It does not increase the expected output quantity of the parent item.

Example

If you know that to output 100 parent items, you have to consume 105 units of the component item and scrap five units in the process, then enter 5 as the scrap percentage. This means that 5 percent more units of the component is picked and consumed.

Tip

See Also