Scrap during manufacturing

During the manufacturing process, scrapping components or finished products may be necessary when items are damaged, defective, or no longer usable.

Tracking scrapped materials helps manufacturers monitor waste, identify process issues, and account for production costs.

In Odoo, scrapped items are removed from physical inventory and moved to a virtual location called Virtual Locations/Scrap. This location is not a physical space—it is a way to log and track losses without affecting real stock levels.

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Location types

Tip

Scrap orders can be viewed by navigating to Inventory ‣ Operations ‣ Scrap. Each scrap order shows the date and time the order was created, along with the product and quantity that was scrapped.

To view the total quantity of each item scrapped, navigate to Inventory ‣ Configuration ‣ Locations, then remove the Internal filter from the Search... bar to display all virtual locations. From the list, select the Virtual Locations/Scrap location.

Manufacturing app

To scrap a product from the Manufacturing app, go to Manufacturing ‣ Operations ‣ Manufacturing Orders and select the desired MO.

On the MO, click the (Actions) icon, then choose Scrap from the drop-down menu.

MO with the cog's drop-down menu revealed, to show the Scrap option.

Shopfloor

In Shop Floor, only components can be scrapped. Navigate to the desired MO card, and then tap the (Actions) icon and in the What do you want to do? pop-up window, select Scrap.

Scrap pop-up window in the Shop Floor app.

Scrap pop-up window

After opening the Scrap Products pop-up window using one of the methods detailed above, select the component or finished product being scrapped, from the Product drop-down menu.

In the Quantity field, enter the quantity being scrapped.

By default, the Source Location field is set to the warehouse's pre-production location, while the Scrap Location field is set to the Virtual Locations/Scrap location. If either the source or scrap location should be changed, select a different location from their respective drop-down menus.

Enable the Replenish Scrapped Quantities checkbox if a picking order should be created to replace the scrapped component upon confirmation of the scrap order. This option should only be enabled for warehouses with two-step or three-step manufacturing enabled, since components are not picked as part of the one-step manufacturing process.

The Scrap pop-up window.

After filling out the Scrap Products pop-up window, click the Scrap Products button. After one or more scrap orders have been created, a Scraps smart button appears at the top of the screen. Click it to view a list of all scrap orders for the MO.