When we but the scrap ( waste ) in the sales ( net of sales ) or in the revenue ?

In most of the manufacturing companies separate scrap sales ledgers are maintained and thus it is booked as revenue (Other Income).

Until scrap items aren't sold off, deduct it from sales. At the time of selling this waste stock, we need to show it differently under incomes via bank/cash.

Some of the situations the manufacturing company like metal items using company thats production time metal thonks are waste that will be salebale as a revenue

When we don't sale scrap then we minus wastage from Sales and show net sales (Sales-Wastage=Net Sale) and When we sale this scrap then we also need to show in income or revenue because our income(cash/bank) is increasing after sale of scrap. Then we need to pass the Journal Entry:

Cash/Bank--Dr.         

&      Sale of Scrap--Cr.