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Subcontracting Scenario

Hi Friends,

I am sending metal sheet in kgs to a vendor. He will cut into pieces and send back in number of pieces. I have to get back scrap sheets left with him and account it and will be scrapped later. I have BOM for Cut pieces with sheet as child item.

one piece = 0.25 kg in BOM and raise PO for cut pieces.

How to get back scrap and account it. Do we have to add scrap % in BOM ?

Please help

Regards

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