Scrap % in Item Card and Production BOM Lines

Scrap % indicates the % of scrap expected during production. You can enter Scrap % in Item Card and Production BOM Lines. The Scrap % in Item Card is different from the Scrap % in Production BOM Line.

Take this example, in order to produce 1 unit of Item A, you need 5 units of Item X.
If you set:
Scrap % in Item Card = 5
Scrap % in Production BOM line = 5

What does this means ? How will it affect your production planning. Let's say, you want to produce 100 units of Item A. 5% Scrap in Item Card means that, in order to produce 100 units of Item A, you need to produce 105 units because 5 units will be scrapped. In order to produce 105 units of Item A, you need 105 x 5 = 525 units of Item X. Because of 5% scrap in BOM, you need to add another 5% (26.25) of Item X in order to produce 105 units of Item A. Therefore, in order to produce 100 units of Item A, you need 525 + 26.5 = 551.25 units of Item X.

In order words, the Scrap% field on a BOM line represents components to be scrapped during production, while the Scrap% field on an item card represents output to be scrapped output (before putting on inventory).

* My company do not use Scrap % in both Item Card and Production BOM