I have a question about something that I’m seeing come up for us lately. This shows up when a Raw Material item is sent to a manufacturer/supplier for the creation of a more complex part. I’ve followed the process as described in the ERPNext docs to create the material transfer from the PO
Scenario “A” Breakdown: Working Correctly - Most items accepted
Step 1 - When the item is sent out, a Stock Entry Type of “Send to Contractor” is created from the PO. Then two entries are made in the Stock Ledger.
- Raw material is subtracted from the Default “Stores” warehouse
- Raw Material is added to the Supplier Warehouse
Step 2 - When the Work is complete and the finished new items are delivered, a Purchase Receipt is created with up to three entries in the stock ledger:
- Raw Materials are removed from the Supplier’s Warehouse
- Accepted new Items are added to the “Default Stores” Warehouse
- Rejected new Items are added to the “Rejected” Warehouse
Scenario “B” Breakdown: Not working - All items rejected
Step 1 - Identical …
Step 2 - When the Supplier delivers the finished new items, but they are all rejected as unusable, on the Purchase Receipt. One, instead of two, entries are created in the stock ledger:
- Raw Materials are NOT removed from the Supplier’s Warehouse.
The raw materials remain in the Supplier Warehouse. This becomes an issue when you attempt to use the supplier again for another run and send another batch of raw material. Now the amount in the Supplier Warehouse is incorrect.
- The total amount of rejected items are added to the “Rejected Items” Warehouse
So my question is what would be considered a good practice or even a legitimate way to work around this constraint? I want to maintain accurate accounting of inventory and also try to be as efficient as possible with the time it takes to manage these processes.
How does the community handle this type of issue?