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 Example: Settling Scrap Locate this document in the navigation structure

The order quantity to be manufactured is 10 pieces. The actual yield is 8 pieces, the scrap quantity is 2 pieces.

You change the distribution rule in the settlement rule so that only 80 % of the costs are settled to the stock account of the material. Then you create a second distribution rule that specifies that the remaining 20% of the costs are to be settled to a cost center.

The actual costs for the order are US$ 2,800. Due to the delivery of 8 pieces to stock, the order was credited with US$ 2,000.

80% of the total costs are US$ 2,240.

20% of the total costs are US$ 560.

The order has already been credited with US$ 2,000 due to the delivery to stock.

As a result, US$ 240 is settled to the stock account for the material and US$ 560 to the cost center.