Have you connected the materials to the correct operation?

Say you have a shop order Lot Size = 10 PCS with operations 10 and 20. You have component A with Qty Per = 1 connected to operation 10 and component A with Qty Per = 1 connected to operation 20. 

Now if you report WIP scrap on operation 10 for 1 PCS system will reduce the required quantity of component B from 10 to 9 PCS. I.e., you can receive the 9 final products with having issues 9 PCS of component B.

If you would not have connected component B to operation 20 it would have required 10 PCS.

Other possible workarounds are to set the Reserve/Issue Method = Manual on the material line(s). Then system only validates that you have issued any quantity. (But then part is also ignored in automatic reservation/issue).

Finally if you rather have disassembled these components recovered from the scrapped unit you can add them and receive them as By-Products on the shop order. So you have issued the full quantity, but then you return some to stock that was recovered from the scrapped unit. In IFS Cloud 23R1 you can receive them from the shop order as disassembly components rather than by-products which also allows receipt of serialized components. 

So we discussed that during our meeting and it still wouldn't solve the problem if we had our materials connected to an operation because we still want to pull materials off that were put on in previous operations.

@Sunnie90  Okay, then try with adding the material that should be returned to stock as By-Products.