Prerequisites
If you are collecting costs on manufacturing orders, you can post the scrap costs to a cost center. You cannot settle scrap costs to a cost center if you are using a product cost collector.
Process Flow
The planned quantity of the order is 10 units. The yield is 8 pieces and the scrap quantity is 2 pieces.
80% of the total cost is USD 2,240.
20% of the total cost is USD 560.