Thanks, Steve. We’ll look at the BOM Scrap %. One more follow up question: if for example we have $100 material and add 5%, then $105 of material will be in the standard cost and also issued to the production order and if they only consume $85 worth of material, does $20 go to favorable material variance?

Thank you Steve. We might be looking to use it for components or raw material only. We are interested in making sure purchasing/planning buys enough materials. Also, does this change the standard cost of the production item when the scrap factor is added in either the routing or the BOM?

Our team is attempting to use the “scrap factor” on our routings, however, we do not really know what the expected result of using should be. Currently we manually add excess into the BOM, which in turn increases the standard cost. Then when we don’t consume all of it in production, we get material variance.

How does the “scrap factor” field…

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