When a "Quality Order" fails and the business decide not to rework the item (or to post as a 'fail'), in the instance the item and its associated Lot/Serial is to be scrapped, the Quantity to Scrap field needs to be populated with the quantity that you want to scrap. This can be some of the quantity for the Lot/Serial No as long as the Total Quantity that has been reworked, scrapped or failed totals the same original Quantity on the Quality Order.

Once the field is populated, in the ribbon select Register Scrap. This will bring up a box to confirm the quantity being scrapped so click 'Yes' to continue. Scrap is then registered. You can then check this by viewing the "Item Ledger Entries" which will display this action as a Negative adjustment against the original Item No and Lot/Serial No and a Positive Adjustment to the new Scrap item. You will notice that the cost is written off. The Lot No/Serial No from the original Item is not transferred over. This is deliberate as if it is being scrapped, it will no longer exist.

Against the open "Quality Order", the Quantity Scrapped field is now auto-populated with the quantity that was scrapped. Populate the Confirmed Result & Post the "Quality Order".