Odoo Inventory allows users to scrap inventory, designating goods or materials that are no longer usable or sellable for disposal (or recycling).

Scrapping inventory in a database helps stock counts remain accurate, by removing scrapped products from physical inventory, and placing it in a virtual scrap location (Virtual Locations/Scrap).

See https://www.odoo.com/documentation/18.0/applications/inventory_and_mrp/inventory/warehouses_storage/inventory_management/scrap_inventory.html

Hi

In Odoo it is possible to have scrap location

You will find in inventory locations a virtual location called Virtual Locations / Scrap

you can use that location

Basically, you need to make sure that :

• Storage locations is activated in inventory app (configuration -> warehouse -> Storage locations) !! remove the filter to see all locations !!

• Then, to put products in scrap location, 
• • you can navigate to Inventory app - Operations - Scrap 
  • create scrap orders, where the source location is the product's current location and the scrap location to Virtual Locations/Scrap
• Now you can validate the transfer and the scrapped products will be there

If you have multiple scrap locations, Odoo by default search the first scrap location -> this case might be applied when you do a scrap during reception of a product for example

Therefore, you can use the OCA module Stock Scrap Location Default to define a default scrap location https://github.com/OCA/stock-logistics-warehouse/tree/16.0/stock_scrap_location_default

However, for now this module is only for version 16 and is not fully migrated to 18

I hope this helps

Hi,

Instead of creating a new location for scrapped or lab-use items in Odoo 18, it's best to utilize the default "Scrap" location. Find it under Inventory > Configuration > Locations and confirm its "Location Type" is set to "Inventory Loss," ensuring it's excluded from on-hand stock calculations. If a default scrap location doesn't exist, create one with those settings.

Use the Inventory > Operations > Scrap functionality to move items to the scrap location, as this is the intended method and handles inventory adjustments automatically. While you can use internal transfers for lab-use items, consider if a separate "Lab Use" location (with "Inventory Loss" checked) is more appropriate if those items might return to stock later. Be aware of the accounting impact of scrapping items and ensure users have the correct permissions.

Reference:-

* https://www.cybrosys.com/blog/how-to-manage-scrap-location-product-movement-in-odoo-18

* https://www.cybrosys.com/blog/overview-of-scrap-management-in-odoo-18-manufacturing

* https://www.youtube.com/watch?v=j5CU2hw1XQo

Hope it helps