ERPNext.com Frappe Cloud Support Partners Foundation Frappe School

How to adjust fabric shrinkage?

I sent fabric 1000 yards for dyeing through subcontracting after BOM of 1:1
After dye it shrinks, i dont know to percentage of shrinking before i receive 950 yards in my warehouse. Now when i make receipt it shows i have 50 yards yet to receive.
And how can i balance its price?
Lets say 1000 yards is for $1000
After shrinkage 950 yards should be worth $1000
But it is for $950

What am i doing wrong ?

Check this issue https://github.com/frappe/erpnext/issues/14094
Subcontracting does not take scrap in account. You can make receipt for 1000 and scrap 50 manually via Stock Entry

If i scrap 50 yards, i lose $50 too. How can i receive 950 yards with increased price of $1000

My main concern is increase price due to shrinkage of product after receiving.

This is also an issue in the kitchen. There are always waste and yields and must be recalculated and accounted back into the foodcost.
I haven’t seen much of the hospitality module. But if it can be handled nicely, it will be good for hospitality module too.

Hmm…

What about making the dye process a manufacturing process. create a BOM that uses 1000 yards of material to generate 950 yards of dyed material. You then distribute the cost of the raw materials evenly across the 950 yards output.

Requires a BOM and then production orders to handle all of the financial backend. You could even put the shipping of the material back and forth as part of the BOM to capture that cost.

Maybe this would work?

It was the only thing that came to mind as a path to a solution.

BKM :sunglasses:

This is not working as well. Summing it up with an actual example.

I had 3040 yards fabric. I created a BOM of 1:1 of undyed and dyed fabric because i dont know the shrinkage percentage nor does my supplier. Lets say it is 5% but its not accurate all the time.
Then stock is transferred to dye supplier.

I received 2861 yards after 20 days. I had to cancel the PO and amend BOM. I manually figured on paper the closest conversion percentage.
I then started BOM of 1 yards undyed in exchange with 0.941 yards dyed fabric.

Then posting PO, i ordered 2861 yards from dye supplier and my raw material supply quantity is automatically 3040.382 and I only have 3040 in my warehouse.

What a drag. BOM is of no use. If there were 7 to 8 digits after decimal I might do i right in BOM but this process is also time wasting.

Moreover, after sending any dye stock one dont know the exact percentage of shrinkage or excess. So one have to cancel/amend documents created months ago and disturbing the workflow.

Please help. New to ERPnext, so much to learn

there is another solution , the scrap yard concept used in the Purchase Receipt, as soon as the scrap will be added it will not only change the auto costing of the data we have to work on two parts here , fabric is not only shrinked it also gains on some ocassion.

1 Like

I just started evaluating ErpNext for my business, I have been using another Textile ERP software for couple of years now and satisfied with it (functionality wise but GUI wise its mediocre like VB). There are many features that need to be incorporated in Erpnext specially in manufacturing domain itself.

For Example

  • Shrinkage of greige fabric when processed i.e. printing or Dyeing
    (In India majority of the companies in Garment/Textile Industry outsource it)
    Shrinkage varies from process to process and fabric to fabric.

  • “L” shortage (Weaver/supplier manipulate True Length) When folding/packaging instead of folding at 100cm they fold it at 98cm or 97cm etc.

  • when Printing/Dyeing/Embroidery etc. is outsourced then it should be considered as Value Addition on top of the raw material. So instead of creating a purchase order we can simply create a “Processor Order” linked to BOM.

  • To avoid labor unions or hiring/payroll many companies subcontract stitching/Layer Cutting/ Finishing/ Packaging in this scenario sub contracted “Job Orders” are created, contractors are paid as per negotiated price per unit plus commission or whatever the terms be.
    Machinery/setup/infrastructure is owned by the company just the manpower part is outsourced.

All of the above points are my observation in SME category of Clothing manufacturer/Exporters. This segment is huge specially in India/ Bangladesh/ Vietnam/ Indonesia just imagine the possibilities.

I tried following what others are suggesting in the thread, it works but not to my satisfaction. I believe all of the above points can be addressed by extensive customization but that will require lot of resources. :sweat_smile:

1 Like