Scrap Sale

Hi All,

I would like to sale the scrap, but quantity is not showing in the system. What is procedure to make sale of scrap item?


Is any luck on this??

Scrap from production is not physical, what you need to do is physically receive the quantity in and then transform it into scrap either by disposition code, batch control, location control etc. Then sell it when you have it.


Create separate Product code for different kind Scraps. When you want to make a Scrap Sale Invoice add the Scrap quantity in the inventory by an Inventory Adjustment Journal and make Sale Invoice.

Go to Inventory and Warehouse Management → Journals → Inventory Adjustment to add the Scrap quantity in to the inventory.

Hope this solution will solve your problem. Please check and confirm.


Don’t forget to the post(s) that solved your problem

Hi Prabhu,

This will not serve the purpose. If we add in inventory adjustment then , finance point of view its not correct.

Entry would be

Dr. Cr.

Scrap ?

which account would be credit ?

Hi Ameen,

On Finance entry part you have to check. i’m not very familiar in finance.


Hi Ameen

When inventory adjustment journal is posted for updating qty of scram item which is created as item master as per Prabu, financial postings are:

Inventory - scrap item a/c Dr
Inventory profit/loss a/c Cr


when sale invoice is posted against this scrap item, below is the financial entry
COGS a/c Dr
Inventory -scrap item Cr

Customer Dr
Revenue -scrap Cr


Financially the “scrap” would be an item, no different from any other item, it has value and needs to be tracked - because they want to sell it.