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Below table provides a summary of different types of scrap in SAP-PP and their impact on production orders.

Type of scrap Scenarios when it can be used Can be maintained in Impact on Production Order
Assembly Scrap When the material is an assembly, and there is some loss when producing it, example to build a quantity of 100 EA, there is a loss of 10 units, so the assembly scrap is 10% . MRP 1 view of material master, applicable when the material is a BOM header material Increases the production order quantity, and increases the required quantity of components
Component Scrap When the material is a component, and is used as a part of an assembly and there is a loss when using that component. When using 100 EA of a component if 10 units are lost, then component scrap can be 10%

MRP 4 view of the material master, if maintained in MRP 4 view, this component scrap is applied to all BOM where the component is used


At BOM line item level, if entered in BOM line item level, then component scrap only applies to that BOM.


Note if the value of component scrap is maintained in the BOM line item, then this value takes precedence over the material master field.  If blank, SAP looks at the material master.
Increases the value of component quantity
Operation Scrap When there is loss in processing an operation and subsequent operation quantities need to be adjusted.

Routing operation step indicates quantity consumed.


BOM line item, indicates quantity used.


It overrides the Assembly scrap in the Routing.  If entered, then the "Net Scrap Indicator" must also be set.

If used in routing, decreases the operation quantity of the subsequent operation.

























Net Scrap Indicator:

This is in the BOM for each component.  It specifies whether to ignore the Assembly Scrap setting in the header material for this component.

It is required if you enter Operation scrap.

It is needed if you want to ignore Assembly Scrap.

It is optional if you only enter Component scrap

Thank you for reading 🙂

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