My company picks up raw materials from a supplier, processes them, then pays for the materials based on the yielded amount after that process. How would I account for that in ERPNext?
- Create Items. Purchase and a yeilded item will be two different item codes.
- Create BOM where purchased item will be raw-material and processed item will be finish good.
- Create Stock Entry (Material Receipt) to inward raw-material.
- Create Purchase Order of type Subcontracting for yeilded item.
If you don’t have standard proportion for raw-finished item, then BOM will have to be created after each processing. Another alternative would be to create Repack Entry, and then do billing for the yeilded item.