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Scrap is feature is remove defected products. 

We can do this, while receiving products, delivering products,manufacturing products, internal moves of the product. 

Make sure Manage multiple locations and warehouses is checked via

Settings -> Configuration -> Warehouse

under the Location & Warehouse section.

When you find any defected product, you can transfer the products into Scrap location.

 

 

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Sir can i ask how do i display scrap product in Manufacturing?

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