Lesson 47 of 64
Stock, finance & operations
Classify productive use, waste, loss and scrap
Explain material differences with optional classification before posting the associated reconciliation.
Before you begin
Prepare a Materials used record and evidence for productive use, waste, loss or recoverable scrap.
Step by step
- Open Waste, scrap & yield and select the intended material count.
- Inspect consumed quantities and the original location and period before classification.
- Allocate supported categories such as productive use, waste, loss and recoverable scrap according to actual evidence.
- Save the draft and review totals and the displayed accounting treatment, resolving any classification imbalance.
- Confirm material reconciliation only after review; it consumes raw materials at FIFO cost and posts the associated stock and accounting entries.
Check the result
Classified quantities should explain the consumed total and match the posted reconciliation.
Common question
Is every difference recoverable scrap?
No. Use the category supported by the physical evidence and review its financial treatment before posting.