diff --git a/erpnext/manufacturing/doctype/bom/bom.js b/erpnext/manufacturing/doctype/bom/bom.js
index 94f9d38..dbff91b 100644
--- a/erpnext/manufacturing/doctype/bom/bom.js
+++ b/erpnext/manufacturing/doctype/bom/bom.js
@@ -83,8 +83,10 @@
 				d = locals[cdt][cdn];
 				$.extend(d, r.message);
 				refresh_field("items");
+				refresh_field("scrap_items");
 				doc = locals[doc.doctype][doc.name];
 				erpnext.bom.calculate_rm_cost(doc);
+				erpnext.bom.calculate_sm_cost(doc);
 				erpnext.bom.calculate_total(doc);
 			},
 			freeze: true
@@ -120,6 +122,7 @@
 	refresh_field('operating_cost');
 }
 
+// rm : raw material
 erpnext.bom.calculate_rm_cost = function(doc) {
 	var rm = doc.items || [];
 	total_rm_cost = 0;
@@ -133,6 +136,17 @@
 	cur_frm.set_value("raw_material_cost", total_rm_cost);
 }
 
+//sm : scrap material
+erpnext.bom.calculate_sm_cost = function(doc) {
+	var sm = doc.scrap_items || [];
+	total_sm_cost = 0;
+	for(var i=0;i<sm.length;i++) {
+		amt =	flt(sm[i].rate) * flt(sm[i].qty);
+		set_multiple('BOM Scrap Item',sm[i].name, {'amount': amt}, 'scrap_items');
+		set_multiple('BOM Scrap Item',sm[i].name,
+			{'qty_consumed_per_unit': flt(sm[i].qty)/flt(doc.quantity)}, 'scrap_items');
+	}
+}
 
 // Calculate Total Cost
 erpnext.bom.calculate_total = function(doc) {
@@ -176,6 +190,7 @@
 cur_frm.cscript.validate = function(doc, dt, dn) {
 	erpnext.bom.calculate_op_cost(doc);
 	erpnext.bom.calculate_rm_cost(doc);
+	erpnext.bom.calculate_sm_cost(doc);
 	erpnext.bom.calculate_total(doc);
 }
 
diff --git a/erpnext/manufacturing/doctype/bom/bom.json b/erpnext/manufacturing/doctype/bom/bom.json
index ae23d5e..94d5139 100644
--- a/erpnext/manufacturing/doctype/bom/bom.json
+++ b/erpnext/manufacturing/doctype/bom/bom.json
@@ -8,11 +8,13 @@
  "docstatus": 0, 
  "doctype": "DocType", 
  "document_type": "Setup", 
+ "editable_grid": 0, 
  "fields": [
   {
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "description": "Item to be manufactured or repacked", 
    "fieldname": "item", 
    "fieldtype": "Link", 
@@ -41,6 +43,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "item_name", 
    "fieldtype": "Data", 
    "hidden": 0, 
@@ -66,6 +69,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "default": "1", 
    "description": "Quantity of item obtained after manufacturing / repacking from given quantities of raw materials", 
    "fieldname": "quantity", 
@@ -94,6 +98,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "cb0", 
    "fieldtype": "Column Break", 
    "hidden": 0, 
@@ -117,6 +122,7 @@
    "allow_on_submit": 1, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "default": "1", 
    "fieldname": "is_active", 
    "fieldtype": "Check", 
@@ -144,6 +150,7 @@
    "allow_on_submit": 1, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "default": "1", 
    "fieldname": "is_default", 
    "fieldtype": "Check", 
@@ -171,6 +178,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "description": "Manage cost of operations", 
    "fieldname": "with_operations", 
    "fieldtype": "Check", 
@@ -196,6 +204,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "rm_cost_as_per", 
    "fieldtype": "Select", 
    "hidden": 0, 
@@ -221,6 +230,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "depends_on": "eval:doc.rm_cost_as_per===\"Price List\"", 
    "fieldname": "buying_price_list", 
    "fieldtype": "Link", 
@@ -247,6 +257,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "depends_on": "", 
    "description": "Specify the operations, operating cost and give a unique Operation no to your operations.", 
    "fieldname": "operations_section", 
@@ -274,6 +285,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "operations", 
    "fieldtype": "Table", 
    "hidden": 0, 
@@ -301,6 +313,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "materials_section", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
@@ -326,6 +339,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "items", 
    "fieldtype": "Table", 
    "hidden": 0, 
@@ -353,6 +367,60 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "scrap_section", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Scrap", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "scrap_items", 
+   "fieldtype": "Table", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Scrap Items", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "BOM Scrap Item", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "costing", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
@@ -378,6 +446,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "operating_cost", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -403,6 +472,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "raw_material_cost", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -428,6 +498,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "cb1", 
    "fieldtype": "Column Break", 
    "hidden": 0, 
@@ -451,6 +522,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "total_cost", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -476,6 +548,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "more_info_section", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
@@ -500,6 +573,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "project", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -527,6 +601,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "company", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -553,6 +628,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "amended_from", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -578,6 +654,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "col_break23", 
    "fieldtype": "Column Break", 
    "hidden": 0, 
@@ -601,6 +678,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "uom", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -626,6 +704,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "section_break_25", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
@@ -650,6 +729,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "description", 
    "fieldtype": "Small Text", 
    "hidden": 0, 
@@ -657,7 +737,7 @@
    "ignore_xss_filter": 0, 
    "in_filter": 0, 
    "in_list_view": 0, 
-   "label": "Item Description", 
+   "label": "Item Desription", 
    "length": 0, 
    "no_copy": 0, 
    "permlevel": 0, 
@@ -674,6 +754,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "column_break_27", 
    "fieldtype": "Column Break", 
    "hidden": 0, 
@@ -698,6 +779,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "image", 
    "fieldtype": "Attach", 
    "hidden": 0, 
@@ -723,6 +805,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "image_view", 
    "fieldtype": "Image", 
    "hidden": 0, 
@@ -749,6 +832,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "depends_on": "eval:!doc.__islocal", 
    "fieldname": "section_break0", 
    "fieldtype": "Section Break", 
@@ -774,6 +858,7 @@
    "allow_on_submit": 0, 
    "bold": 0, 
    "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "exploded_items", 
    "fieldtype": "Table", 
    "hidden": 0, 
@@ -802,13 +887,14 @@
  "hide_toolbar": 0, 
  "icon": "icon-sitemap", 
  "idx": 1, 
+ "image_view": 0, 
  "in_create": 0, 
  "in_dialog": 0, 
  "is_submittable": 1, 
  "issingle": 0, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2016-05-13 18:28:53.557967", 
+ "modified": "2016-09-26 02:27:05.092369", 
  "modified_by": "Administrator", 
  "module": "Manufacturing", 
  "name": "BOM", 
diff --git a/erpnext/manufacturing/doctype/bom/bom.py b/erpnext/manufacturing/doctype/bom/bom.py
index 580d1ba..67c2129 100644
--- a/erpnext/manufacturing/doctype/bom/bom.py
+++ b/erpnext/manufacturing/doctype/bom/bom.py
@@ -74,14 +74,13 @@
 		return item
 
 	def validate_rm_item(self, item):
-		if item[0]['name'] == self.item:
+		if (item[0]['name'] in [it.item_code for it in self.items]) and item[0]['name'] == self.item:
 			frappe.throw(_("Raw material cannot be same as main Item"))
 
 	def set_bom_material_details(self):
 		for item in self.get("items"):
 			ret = self.get_bom_material_detail({"item_code": item.item_code, "item_name": item.item_name, "bom_no": item.bom_no,
 				"qty": item.qty})
-
 			for r in ret:
 				if not item.get(r):
 					item.set(r, ret[r])
@@ -103,12 +102,12 @@
 
 		rate = self.get_rm_rate(args)
 		ret_item = {
-			 'item_name'	: item and args['item_name'] or '',
-			 'description'  : item and args['description'] or '',
-			 'image'		: item and args['image'] or '',
-			 'stock_uom'	: item and args['stock_uom'] or '',
-			 'bom_no'		: args['bom_no'],
-			 'rate'			: rate
+			'item_name'	: item and args['item_name'] or '',
+			'description'  : item and args['description'] or '',
+			'image'		: item and args['image'] or '',
+			'stock_uom'	: item and args['stock_uom'] or '',
+			'bom_no'	: args['bom_no'],
+			'rate'		: rate
 		}
 		return ret_item
 
diff --git a/erpnext/manufacturing/doctype/bom_scrap_item/__init__.py b/erpnext/manufacturing/doctype/bom_scrap_item/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/manufacturing/doctype/bom_scrap_item/__init__.py
diff --git a/erpnext/manufacturing/doctype/bom_scrap_item/bom_scrap_item.json b/erpnext/manufacturing/doctype/bom_scrap_item/bom_scrap_item.json
new file mode 100644
index 0000000..ea5e6c1
--- /dev/null
+++ b/erpnext/manufacturing/doctype/bom_scrap_item/bom_scrap_item.json
@@ -0,0 +1,248 @@
+{
+ "allow_copy": 0, 
+ "allow_import": 0, 
+ "allow_rename": 0, 
+ "beta": 0, 
+ "creation": "2016-09-26 02:19:21.642081", 
+ "custom": 0, 
+ "docstatus": 0, 
+ "doctype": "DocType", 
+ "document_type": "", 
+ "editable_grid": 1, 
+ "fields": [
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "item_code", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Item Code", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Item", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "item_name", 
+   "fieldtype": "Data", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Item Name", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "quantity_and_rate", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Quantity and Rate", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "qty", 
+   "fieldtype": "Float", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Qty", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "rate", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 1, 
+   "label": "Rate", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Company:company:default_currency", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "column_break_6", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "stock_uom", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Stock UOM", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "UOM", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "amount", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_list_view": 0, 
+   "label": "Amount", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Company:company:default_currency", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }
+ ], 
+ "hide_heading": 0, 
+ "hide_toolbar": 0, 
+ "idx": 0, 
+ "image_view": 0, 
+ "in_create": 0, 
+ "in_dialog": 0, 
+ "is_submittable": 0, 
+ "issingle": 0, 
+ "istable": 1, 
+ "max_attachments": 0, 
+ "modified": "2016-09-26 02:58:58.433348", 
+ "modified_by": "Administrator", 
+ "module": "Manufacturing", 
+ "name": "BOM Scrap Item", 
+ "name_case": "", 
+ "owner": "Administrator", 
+ "permissions": [], 
+ "quick_entry": 1, 
+ "read_only": 0, 
+ "read_only_onload": 0, 
+ "sort_field": "modified", 
+ "sort_order": "DESC", 
+ "track_seen": 0
+}
\ No newline at end of file
diff --git a/erpnext/manufacturing/doctype/bom_scrap_item/bom_scrap_item.py b/erpnext/manufacturing/doctype/bom_scrap_item/bom_scrap_item.py
new file mode 100644
index 0000000..b6d423f
--- /dev/null
+++ b/erpnext/manufacturing/doctype/bom_scrap_item/bom_scrap_item.py
@@ -0,0 +1,10 @@
+# -*- coding: utf-8 -*-
+# Copyright (c) 2015, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+from __future__ import unicode_literals
+import frappe
+from frappe.model.document import Document
+
+class BOMScrapItem(Document):
+	pass