This is my understanding between option is process loss and is scrap item
is scrap item is used for add additional raw materials in material consumption,
is process loss is used for reduce the finish goods, it won’t touch the raw material.
if my understanding is correct, my question is
When I setup the product with is_process_loss in finish the work order, system ask for the target warehouse, I have to choose a warehouse. I think if it is marked as process loss, it should be gone with value subtracted. otherwise we still can see them in stock ledger
But now, if one of my semi-finished good (e.g. circuit board) is damaged and can no longer be used to make finished product (e.g. Remote Control). Where do I put this damaged item? If I put it in Scrap Warehouse, it’ll still show some value, but for me it has no value now as it is useless for me.