Packing Material Management

ERPNext Accounting
1

Hello all,

We deal with agriculture products such as rice. We get bulk and sell it in retail. To pack the 1 kg Rice item we use plastic covers. We buy these packing material in bulk as Kilograms. Once in a quarter, we need to see how many plastic covers are left.

The right way to do this would be that in every STE of repack of 1 Kg of rice, we also need to use the plastic cover item, so that stock numbers decrease. But we feel this is waste of time and resources to add packing materials also in the STE along with the rice item. As a workaround we would like to do the below. Pls let us know if its ok.

  1. Create a PINV with 5kg of plastic covers.
  2. After 4 months, we would weight the remaining covers left. Lets say 1 kg is left.
  3. To update the stock of plastic covers correctly. We create a Material Issue of 4kg. We will be using “Packing Material Account Head” as the difference amount AH.

Pls let us if the P&L report and stock will be proper this way.

1 Like
2

I think you can can use product bundle method.
But only if you know how many pieces of plastic covers are there in 1kg.

So using this you can define plastic covers in kgs and pieces.

Then in product bundle you can define if 1 item rice 1kg pack is sold then will deduct 1kg of rice from lets say 10kg bag and 1piece plastic cover.

Using this you only have to do yhe product bundle configuration once and that will automatically maintain the right inventory of rice and plastic covers. On the purchase side you can buy plastic covers and rice bag as normal sales items.

3

The no. of pieces per kg of covers varies as it depends on the size of cover or the variant that is packed like 1 Kg, 1/2 Kg, 5 Kg etc; sometimes the pieces may be 50 and sometimes it may be 40 or even more also.

4

Thank you @fkardame we will definitely check it out.

Currently we are in middle of the Fiscal year, and lot of bags have already been used in repacks, but the stock of these plastic bags still shows up as these packets were not used in the STE doc of repack.

Can we get a clarification on the Material Issue doc, whether to use it to hit the PackingMaterial expense AH as difference AH in STE is logically and accounting wise correct.