diff --git a/addons/stock/data/stock_data.xml b/addons/stock/data/stock_data.xml
index e9bc83c9794..23eff682ad6 100644
--- a/addons/stock/data/stock_data.xml
+++ b/addons/stock/data/stock_data.xml
@@ -31,13 +31,6 @@
             <field name="posz">1</field>
             <field name="company_id"></field>
         </record>
-        <record id="stock_location_scrapped" model="stock.location">
-            <field name="name">Scrapped</field>
-            <field name="location_id" ref="stock_location_locations_virtual"/>
-            <field name="scrap_location">True</field>
-            <field name="usage">inventory</field>
-            <field name="company_id"></field>
-        </record>
 
         <record id="location_procurement" model="stock.location">
             <field name="name">Procurements</field>
@@ -167,5 +160,8 @@
         <function model="res.company" name="create_missing_production_location">
             <value model="res.company" eval="obj()"/>
         </function>
+        <function model="res.company" name="create_missing_scrap_location">
+            <value model="res.company" eval="obj()"/>
+        </function>
     </data>
 </odoo>
diff --git a/addons/stock/models/res_company.py b/addons/stock/models/res_company.py
index 37ba46bb10a..7955023918b 100644
--- a/addons/stock/models/res_company.py
+++ b/addons/stock/models/res_company.py
@@ -67,6 +67,17 @@ class Company(models.Model):
                 'value': 'stock.location,%d' % production_location.id,
             })
 
+    def _create_scrap_location(self):
+        for company in self:
+            parent_location = self.env.ref('stock.stock_location_locations_virtual', raise_if_not_found=False)
+            scrap_location = self.env['stock.location'].create({
+                'name': '%s: Scrap' % company.name,
+                'usage': 'inventory',
+                'location_id': parent_location.id,
+                'company_id': company.id,
+                'scrap_location': True,
+            })
+
     @api.model
     def create_missing_warehouse(self):
         """ This hook is used to add a warehouse on existing companies
@@ -101,6 +112,14 @@ class Company(models.Model):
         for company in company_without_property:
             company._create_production_location()
 
+    @api.model
+    def create_missing_scrap_location(self):
+        company_ids  = self.env['res.company'].search([])
+        companies_having_scrap_loc = self.env['stock.location'].search([('scrap_location', '=', True)]).mapped('company_id')
+        company_without_property = company_ids - companies_having_scrap_loc
+        for company in company_without_property:
+            company._create_scrap_location()
+
     @api.model
     def create(self, vals):
         company = super(Company, self).create(vals)
@@ -108,5 +127,6 @@ class Company(models.Model):
         company.create_transit_location()
         company.sudo()._create_inventory_loss_location()
         company.sudo()._create_production_location()
+        company.sudo()._create_scrap_location()
         self.env['stock.warehouse'].sudo().create({'name': company.name, 'code': company.name[:5], 'company_id': company.id, 'partner_id': company.partner_id.id})
         return company