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In the standard system, all actual costs incurred in an order are settled 100 % to the material produced. Any scrap produced in the production process causes the average price to increase in the standard system, due to the difference between the order quantity and the actual yield. To avoid the price of the material increasing when scrap occurs, you must manually adjust the percentage of the existing distribution rule to the actual yield produced and then create a new distribution rule for the actual scrap percentage. You could then, for example, enter a cost center as the settlement receiver for the new distribution rule.

Example: Settling Scrap