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Can anybody explain how dynamics 365 supports scrap process.
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Sure, have a look at the return process in the documentation:
ax.help.dynamics.com/.../sales-returns
You have variable and constant scrap that can be added for each BOM line.
Variable scrap is added for each unit of quantity for the production order like process time is.
The constant scrap is added one time per order like setup time is.
The weight of the scrap is deducted when doing item calculation.
Scrap can either be a part of the cost of the finished item or posted to a separate account added in the general production control parameters.
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