How do I record and approve a scrap order?

Goods broken in handling, past their expiry date, or defective from the factory. Do not remove them from stock with a silent adjustment — record a scrap order that keeps the reason, the value and who approved it.

Steps

1. Open Inventory → Scrap Orders and press New Scrap Order — image 1.
2. Pick the branch, then the warehouse.
3. Write general notes describing what happened.
4. Attach a photo or PDF if you have evidence — up to 5 MB.
5. On the lines: choose the product and enter the quantity; the system shows the available figure and the unit cost and calculates the line total.
6. Choose the reason: damaged, expired, broken, defective, other.
7. Press Save as Draft.

Approval

The order is saved as a draft and deducts nothing — the screen says so: "Scrap is created as draft. Approve it to deduct from inventory." Open it and press Approve, and a scrap movement is recorded for each line and the balance drops — image 2.

The accounting effect

Approval creates an entry: debit Inventory scrap loss, credit Inventory, valued at quantity times unit cost. The loss shows up in the income statement instead of quietly vanishing from assets.

Notes

• A draft can be edited and deleted; an approved order cannot be deleted but can be cancelled, which returns the quantity to stock.
• Keep the approval permission separate from the creation one; scrapping is a door that gets abused when both sit with one person.
• The unit cost is filled from the item's average cost in that warehouse and can be edited on the line.
• The attachment is not a luxury: a photo of the damaged goods is what convinces an auditor later.
• Review the scrap report monthly; one reason recurring points to a storage or handling problem.
• Do not scrap goods merely because they are slow-moving — scrapping is for damaged stock, not dead stock.