Material loss in mfg


My client manufacturs some items by melting. So during melting some amount of material losts. so how to and where should i record this item loss in manufacturing

For ex,

item A 20 Kgs

Item B 10 kgs

he melts the bith items to get item c but after melting he gets only 28 kgs remaining 2 kgs are waste . so how to record this issue


Are they using Production Orders then use Consumption/Output journals

If BOM Journals then more complex to control cost - the easiest is to amend the BOM to reflect the yield.

John if i got your question right, then this is not waste this is just BOM components. To get 28 Kgs of FG i.e. Item C you need 20 Kg of Item A and 10 Kg of item B. So pick calculator to get the exact BOM.

Waste would have been if u were supposed to use 18 Kg of Item A (actual consumption) but are using 20 Kg or 8 Kg of Item B (same expla) .