@lisa118 

If you are a manufacturing company, consider having a 3rd party app to deal with it. For any output of a process, you can specify the output item as waste. Based on the percentage of waste items and non-waste items, the system will calculate a yield for your process. This helps you to evaluate materials from different suppliers, for example, to determine which gives you the best outputs in your manufacturing. Waste items go into inventory like any other inventory item, so that they can be tracked and used later as needed.