Hi Pascal,

You must define an expense account called 'Inventory loss' or 'Scrapped products' or whatever you like.

Movements to this location will produce credit to inventory, debit to the selected expense account.

The stock input account will be used when you move stock into this location.

The stock output account will be used when you move stock out of this location.

Both should use the same account.

Regards,

Jordi Ballester

Www.eficent.com