What is the purpose of Scrap Variance on a work order?
We scrap assembly items periodically within a work order. Typically, that means that there is a scrap expense based on the item profile settings.
We're trying out using the Formula item structure.
During testing of work orders where the outputs are items with a Formula item structure we noticed that a new Scrap Variance accounting line type is created after running the costing processes after closing the work orders.
- Is the scrap variance happening now because we are using formula items?
- Trying to understand if this is the intended functionality.
- If so, is this a configurable option? In other words, can we avoid creating the scrap variance accounting line type?
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