How to consume a "non sales Item" in the correct way?

ERPNext Stock/Inventory
1

I have an Item A4 paper that is being consumed internally. Is Sales Item is unchecked in that Item.

Now I wonder how can I consume this item and likewise trigger a Material Request in the right way.

I’d expect a Stock Entry being the right tool, but can’t find any Purpose that seems to match this scenario. Neither does it seem to be possible to define, nore edit those Stok Entry Purposes

Can someone point me in the right direction here?

2

Set it up as a non-stock item. It will get expensed out as soon as you do a Purchase Receipt. You could use a different expense account for it though.

You use visual cues to figure out when you need to reorder paper.

This assumes that paper is a category C item. If paper gets consumed during manufacturing, you should set it up as a stock item and then consume that as you make the product/assembly. The cost of paper then gets converted into the valuation of the product/assembly and will sit as Current (Stock) assets. Ultimately when you sell the product, the valuation of the product will move from your Stock Assets to your P&L (Cost of Goods Sold).

Hope that helps.

Thanks

Jay

1 Like
3

If you want to set it up as a stock item and expense out reams of paper, do a stock entry, purpose material issue and use the expense account (Office Overheads, Stationary Expenses, etc.) to book the expense of this item.

Thanks

Jay

1 Like
4

yes, it should be a stock item. But not a component, Just Office consumed paper (sorry whether my post was not clear enough)

So I’ll try Material Issue. Just not 100% clear yet what sort of warehousu ro move it to in order to reduce total stock level practically and not just shift from one place to another

5

A Stock Entry Material Issue does not have a destination warehouse. The double entry bookkeeping offsets the valuation of the stock against the other (expense) account.