Scrap Value Not Affecting Cost Properly

We added scrap material with price, but cost per product still seems high. Is scrap reducing the cost automatically?

Scrap reduces net manufacturing cost only if:

  • Scrap item is properly created

  • Scrap price is entered correctly

We entered quantity but not price.

If scrap price is zero, it won’t offset production cost. Enter scrap value correctly to reduce cost per product.