Scrap accounting in Sheet metal industry

Hi,
I need to take account of the sheet metal scrap generated in the cutting process.
ex: 100 * 100 mm size of thin sheet metal in cut in to numerous pieces, and remaining portions are scrapped.
1. How can i take account of this amount?
2. During production posting/confirmation can these scrap goods be moved automatically to a scrap storage location?

Hi,
I hope the scrap material will be sold in kilogram.
Try to do below things,
Create a material as "scrap" or as you want. Material type should be by-product. In material master MRP 2 view, select 1 in back flush filed and select tick mark for co-product.
Now in BOM, maintain the by-product material in -ve quantity.
Eg: To produce 100*100 mm size let say if you receive 10gram then, enter the value as -10 gram.
During production order confirmation in co11n, system will propose the scrap material automatically during goods movement with 531 movement type. You can receive it in different storage location if you want.
Hope this will solve your doubt.
Regards / US

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