Things to remember while adding Scrap invoice in any ERP software:
1.Keep track of the scrap while production-the proper moment and conversion of rejection should be done.
2.
Documentation and signing of the hard copy
of the scrap voucher (conversion process) should be done.
These points make it ready for the permanent audit.
External Reasons
1.GST-The scrap created while production should be sold in market as the sale of scrap is liable to output GST on applicable rates i.e.,5% or 18% according to scrap.
2.TCS-TCS collection should be done as under Income tax.
Internal reasons
1.Keep check on the scrap if its purely a scrap or a part of raw material.
2.Logical rejection should be addressed and signed.