Scrapping items during production in Microsoft Dynamics 365 Business Central is handled through the consumption flow. By adding a reason code to a normal consumption posting, you register the scrapped quantity on the production order and track why the items were scrapped. This article explains how to scrap items with the Consumed Quantity action and how the scrapping shows up in the item ledger entries.
You scrap items by starting a normal consumption flow and adding a reason code. The system treats the scrapped items as a consumption from inventory, so no separate scrap process is needed.
You add the reason code by placing a checkmark in the state reason field, which then prompts you to select a reason code such as “damage in shipment”.
After posting, you can verify the scrapping in the item ledger entries, where the scrapped quantity appears with the reason code attached.
Scrapping items on a production order with the Consumed Quantity action
When you need to scrap an item quantity on a production order, you use the Consumed Quantity action. The scrapping runs through the same flow you use for consuming any other quantity, because the items are physically taken from inventory. The only difference is that you add a reason code to mark the consumption as scrap.
Start by selecting the production order number, then select the item number. This is the same process you already know from consuming items during production.
Adding a reason code to register the scrap
In the normal picture where you state the quantity, you will see that the return reason code is not yet defined. To define it, place a checkmark in the state reason field. The system then prompts you to choose a reason code.
The reason code can be whatever fits your situation, for example “damage in shipment” or another code from your setup. Once you select it, you return to the picture where you can adjust the quantity that was bad. For example, you might set the quantity to two pieces.
When you have entered the quantity and the reason code, register the data to post the scrap.
Checking the scrapped quantity in the item ledger entries
After registering, you can confirm the result in the item ledger entries. The two pieces you scrapped now appear as taken out of inventory, with the return reason code “damaged” attached. This gives you a clear trace of how much was scrapped and why.
Q&A
How do you scrap an item quantity on a production order in Business Central?
You use the Consumed Quantity action. Select the production order number and the item number, then start the normal consumption flow. Add a reason code to mark the quantity as scrap, enter the quantity, and register the data.
How do you add a reason code when scrapping items?
In the picture where you state the quantity, the return reason code is not defined by default. Place a checkmark in the state reason field, and the system prompts you to choose a reason code, such as “damage in shipment”.
Why does scrapping use the consumption flow?
Because the scrapped items are physically taken from inventory, the same as a normal consumption. The reason code is what distinguishes scrap from regular consumption.
How can you verify that items were scrapped?
Open the item ledger entries. The scrapped quantity appears as taken out of inventory with the return reason code, for example “damaged”, so you can see how much was scrapped and the reason.