I believe there is a problem in the MRP program.
 
When I run Generate MRP and include “S” status work orders the allocation that it is showing does not include the scrap factor.
It appears to be using the BKBMMSTR record on an “S” status because there would not be a WOMAT records until released, but the calculation either way should be (order quantity*quantity per * scrap factor) to obtain total required quantity.
 
Currently, it is causing us to order less than we need, then when the status is changed to “R” and MRP is generated we have to scramble to release another purchase order to cover the scrap.