Cost Bifurcation between Finished Goods and Scrap Item

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Posted on by Jainam M. Kothari

15,810 Super User 2026 Season 1

Currently, the Business Central allocates cost using the formula: Total Cost / Total Quantity, which means cost is distributed purely based on quantity.

However, we require a 75% – 25% cost split between Finished Goods and Scrap Item as the Scrap Item is my Saleable Item just like my Finished Goods.

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Dynamics 365 Business Central

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AndrewThomas81 518 on at

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Can you provide further information? It sounds like you are stocking a single item, but selling two?

Kind Regards

Andrew Thomas
https://www.usebusinesscentral.com/
https://www.youtube.com/@usebusinesscentral

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Zhilan 144 on at

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So technically

You want to split the actual cost of the item 75% - 25%
75% for finished goods and 25% for the scap that you got in production process, also you are selling the scrap and making a revenue from it.

if yes, in the business central we don't have cost spliting out of the box therefore you will have these solutions (Financial & Technical Wise):

1. Create two separate items in business central one of them will be finished good and the other will be the scrap each one has it's own cost that is entered manually or automatically using tools or custom extension or a workflow however you will need to mention it in the BOM costing structure

2. You can use Bundle \ Assembly item for your purpose I belive it will solve your issue it will technically do what you want to do but becareful or margin and profit managment.

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YUN ZHU 99,360 Super User 2026 Season 1 on at

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Hi, As far as I know, the standard only supports the following two methods. If you need other options, this may require customization.

Post Scrap Manually

https://learn.microsoft.com/en-us/dynamics365/business-central/production-how-to-post-scrap?wt.mc_id=DX-MVP-5004336

Thanks.

ZHU

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Jainam M. Kothari 15,810 Super User 2026 Season 1 on at

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Hello @Zhilan

Let us check the First Option to Create 2 Seperate Items. then i will let you know on the same.

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OussamaSabbouh 13,323 Super User 2026 Season 1 on at

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Hello,

Business Central cannot split production cost by percentage (like 75% FG / 25% Scrap) out of the box. During output posting, the system distributes the total production cost based only on quantity (Total Cost ÷ Total Output Quantity). If your scrap item is actually saleable, the usual options are: manually adjust the cost after posting using Item Charge assignment or the Revaluation Journal, or implement a small AL customization to override the cost distribution during production output so the system posts 75% of the cost to the Finished Good and 25% to the Scrap item automatically.

Regards,
Oussama Sabbouh

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