Inventory : Operations: Scrap
Purpose
The scrap function moves products damaged or otherwise unsellable products to a virtual location so their value can be included in reporting. Scrap locations are created during warehouse set-up, so it is possible to have more than one with various use cases, such as if the item has some sort of salvage value.
The purpose of this documentation is to introduce you to the Scrap operations in Odoo 13.
Process
To start, navigate to the Inventory app.
Once there, go to OPERATIONS > SCRAP. This will take you to a list view of previous scrap movements.
To make a new Scrap order, click CREATE. This will open the New Scrap Orders form.
Product: Select the product you will like to scrap from your inventory.
Quantity: Is the amount of products you will be scrapping. If you are needing to use a different Unit of Measure (UoM), you can easily select this by clicking the drop-doown arrow to display a list. Next, the UoM is selected from the list. For this example, the product needs to be scrapped as one unit, so it will stay on the Unit option.
Package: Select how the product is packed, if applicable.
Source Location: Select the location of the products in your warehouse.
Scrap Location: Select the destination of the scrapped products.
Source Document: Enter a source document reference here, if applicable. 
Once all required fields are complete, click SAVE. Click VALIDATE to complete the Scrap movement.