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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Scrap Inventory
Supply chain | Supply Chain Management, Commerce
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Scrap Inventory

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Posted on by JM-30100629-0 6
We have just implemented D365 with minimal training. I am wondering what the options are for scrapping inventory (quality/production error). Is there a transaction code or something we need to do? Also, what is the best way for setting up a non-inventoried location in D365 for raw material we receive that may be damaged or not usable? Thanks! 
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  • Suggested answer
    BillurSamdancioglu Profile Picture
    BillurSamdancioglu 19,036 Most Valuable Professional on at
    Scrap Inventory
    There are dıfferent ways to scrap inventory.
    One of them is to use the ınventory journals. 
  • Jonas "Jones" Melgaard Profile Picture
    Jonas "Jones" Melgaard 4,894 Super User 2025 Season 2 on at
    Scrap Inventory

    I strongly agree with @BillurSamdancioglu—there are several ways to approach this.
    The easiest method is to create an inventory movement journal and use it to scrap the goods.

    From what you’re describing, it sounds more like you want to establish quality and non-conformance processes. In F&O, you can configure  the system to automatically generate quality orders and use that for quality management. This is commonly implemented in process manufacturing industries—I've done it often in a prior life.

    It can be challenging to implement these processes if you’ve only had minimal training. Ideally, this topic should be discussed with a specialist or a VAR.

    For more information, here’s an article on enabling quality management in F&O.
    And here are some videos that demonstrate quality management in F&O:

    Again, this is a really complex topic, so be sure to test thoroughly before implementing in production!

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