Hi Everyone,
I’m working with a manufacturing setup in Business Central (BC), and I have a question regarding scrap management during the production process.
When we produce a Finished Good (FG), there is often some scrap generated—for example, broken bottles, damaged caps, or excess packaging in a beverage bottling plant. I’m trying to understand:
Is there a way to map or assign a specific G/L account for this scrap in BC?
If not directly, what is the ideal process to account for this scrap so that we can book some value for it (e.g., when it’s sold as recyclable material)?
How do others handle this in practice—especially in industries like bottling or food & beverage where scrap is common?
Example Scenario:
In a beverage bottling plant, during the production of 10,000 bottles of soda, around 100 bottles are damaged or rejected due to quality issues. These are collected and later sold to a recycling vendor. I want to ensure that this scrap is:
Captured in the system during or after production.
Booked to a proper G/L account (e.g., Scrap Revenue or Inventory Offset).
Sold through a sales order or journal entry to reflect the income.
Is there a standard or recommended way to do this in BC? Should we use a separate item for scrap, or is there a better approach?
Any insights, best practices, or examples would be greatly appreciated!
Thanks in advance,
Sumit Singh
