How to account for stock losses

ERPNext Stock/Inventory
,
1

Use case is:

We purchase and receive a batched item, so for example we receive into Stores W/H:

  • Batch A 10kg
  • Batch B 20kg

We move these via Stock Entry to Work in Progress warehouse for processing

The process basically takes in any amount of batches, then the result of that is supposed to become a finished good which can then have a slightly lower quantity. With our example, the total qty in WIP Warehouse would be 30kg (Batch A & B), and after processing the resultant item can be 29kg, with a loss of 1kg.

I would like to record the 1kg lost’s value under a Loss Expense account.

My question is, is this possible in v14/v15? If so how would I go about it.

TIA

2

Are you using Manufacturing module with BOMs? Check out scrap function.

What does processing entail? Do you just perform a repack?

3

Hi.
the Difference of 1 Kg Loss should be booked as
Process Loss A/c Dr
WIP A/c Cr.
(Should be Booked only through Stock Journal)
Booking as Expenses will duplicate the As First done thru purchase & not possible b’cos of missing Credit Account in Financial Books.
I hope my reply will help you to find get technically in ERP
I am Just beginner in ERPnext.

4

Create a Stock Entry to process the batches in the “Work in Progress”. Set the purpose as Manufacture. In the “Items” table, add the batches (Batch A and Batch B) as consumable items. In the “Finished Goods” table, add the finished good item with the resultant quantity (29kg).

To account for the 1kg loss, you can use Expense Account (e.g. Process Loss). In Stock Entry, add an additional row in the “Items” table for the loss. Set the item as a non-stock item and the quantity as 1kg.