Scrapping removes stock from usable inventory without a customer delivery or internal transfer. Odoo handles scrapping through stock.scrap, which generates a stock move to a dedicated scrap location, creates the accounting journal entry, and updates inventory valuation.
Creating a Scrap Order#
Inventory → Operations → Scrap
| Field | Description |
|---|---|
| Product | Product being scrapped |
| Lot/Serial Number | Required if the product is tracked by lot or serial |
| Quantity | Amount to scrap |
| Source Location | Where the stock currently sits (usually WH/Stock) |
| Scrap Location | Destination (default: Virtual Locations/Scrap) |
Click Validate to complete the scrap. The stock move is created immediately.
Scrap from a Manufacturing Order#
The Scrap button on a manufacturing order toolbar opens a wizard pre-filled with component products and source location set to WH/Production. Scrapping a component does not auto-trigger replenishment - add the component back manually if still needed for the MO.
Scrap from a Receipt#
Use the Scrap toolbar button on a validated receipt to scrap defective goods received. Odoo moves the stock from the receipt's destination location to the scrap location, bypassing put-away rules.
Scrap Location#
The default scrap location is a virtual location with Is a Scrap Location? checked. Stock here is excluded from on-hand quantities and forecasts.
Multiple scrap locations let you distinguish reasons: "Quality Scrap", "Expiry Scrap", "Damage in Transit". Create custom locations at Inventory → Configuration → Locations → New with Is a Scrap Location? checked.
Accounting Entry#
For FIFO or AVCO products:
| Account | Debit | Credit |
|---|---|---|
| Inventory Valuation | - | Cost of scrapped stock |
| Scrap Expense Account | Cost of scrapped stock | - |
The scrap expense account comes from the product category's Expense Account. A missing account creates a zero-value entry and understates scrap costs.
Undoing a Scrap#
Validated scrap orders cannot be reversed via the UI. To undo:
- Create an Inventory Adjustment to restore stock to the source location
- Manually reverse the accounting journal entry
Common Mistakes#
- Scrapping without a lot number on tracked products - always specify the lot; inconsistent state can cause downstream picking errors
- Wrong source location - if stock is at WH/Stock/Shelf A but you scrap from WH/Stock, the move fails with a negative quant warning
- Using inventory adjustments for defective goods - negative adjustments do not create a scrap expense entry; always use a scrap order for financial accuracy