Write-off of materials and waste in production

How to write off used materials?

1. Automatic write-off of used materials when releasing finished products

If no other method of writing off materials is set, Torgsoft automatically writes off used materials after the release of finished products, including when defective goods are written off. 

The release and write-off of products is performed in the “Production Acts” tab. Go to the “Document” menu — “Finished Product Manufacturing” — select a Production Act and click the required button “Release finished products” or “Write off item” — fill in the opened forms, specify the quantity of produced or defective goods: 

2. Writing off used materials using the “Write off all materials” action in the Production Act

Materials can be written off manually. In the Production Acts the “Write off all materials” action is available . To write off all materials at once, click the “Write off all materials” button , and the program will write off all materials from the warehouse for the given Production Act (does not apply to route sheets):

If you accidentally wrote off materials and want to cancel this action — click the “Cancel write-off of all materials” button  :

3. Writing off materials during operations in Route Sheets

Route Sheets are used for employees to record the completion of each operation. In the Torgsoft software for production, you can select the type of operation when filling in the Product’s Technological Card: «Weighing», «Operation», «Write-off». To ensure the software writes off materials after each completed operation, the material must be "linked" to the operation. 

How to link a material to an operation?

To link a material to an operation in the “Operation Material” table, click the “Add” button, select “Operation Material” and “Material write-off method” 

• Proportionally to the number of operations

• All material during the first operation

• All material during the last operation

Click “Save”.

How to write off materials using the “Write-off” operation?

If you set the operation type to «Write-off» — upon recording the completion of the operation in the Route Sheet, you will be able to manually specify the amount of material used. 

This is convenient when you don't know exactly how much material will be used for production, and you have indicated an approximate quantity in the Technological Card, but want the software to write off materials based on the actual amount used. This scenario is common at the beginning of production, when the entrepreneur is just launching the manufacturing line, studying the process, and determining how much material is actually consumed per product unit.

Write-off acts for materials can be viewed in “Document” — “Finished Product Manufacturing” — “Production Acts” — “Write-off Acts”:

What to do with production waste and how to record it?

Most often, not all materials are fully used in the production process. For example, trimming fabric or cardboard creates scraps. To account for such waste in the software, their quantity must be specified when adding materials to the product's Technological Card.

Waste can be divided into 3 types:

1. Reusable in the same production operation, such as glue, unset polymer, glitter, etc.

2. Reusable for another stage of production, e.g., fabric, lace, or cardboard scraps unsuitable for sewing shoes but usable as filler or recyclable by another company.

3. Completely unusable waste that must be disposed of — simply thrown away.

If the waste is unusable for further production — everything is simple: you don’t need to specify any waste, and Torgsoft will write off materials based on the quantity set in the Technological Card.

If the waste is reusable — the remaining material must be returned to the warehouse. How to do this? 

1. Waste reused in the same operation

The waste must be returned to the warehouse in the form of the same material it originated from. 

This mostly applies to liquids and bulk materials. For example, producing one pair of shoes requires 3 ml of glitter. In reality, only 1 gram remains on a pair of sneakers, but it cannot be evenly distributed in such a small amount. Therefore, a large quantity is applied, and the excess is reused. The glitter waste is returned to the warehouse as glitter.

How to record waste as the original material?

To register such waste in the warehouse, specify the waste quantity in the “Materials” section of the Technological Card:

Check the “Return waste to warehouse” box and click “Save”:

Nothing else needs to be specified. 

How does it work?

In the example, 3 grams of glitter are specified, of which 2 grams are waste. So for each pair of shoes, 3 grams will be written off, but 2 grams will be returned to the warehouse as “Glitter”, resulting in only 1 gram being deducted from stock.

You might think: why not just specify 1 gram? — This waste scheme is used when employees need to know how much material to use for one unit based on the Technological Card.

2. Waste reused in another operation or sent for recycling

Sometimes, waste cannot be reused in the same operation but can be reused in another way. In this case, it should be returned to the warehouse as a new material, not the original one. 

This mostly applies to cut materials: fabric, leather, fur, cardboard, etc. For example, making shoe inserts requires 450 cm² of cardboard. Waste may be 90 cm² — not enough for another insert, but suitable as filler or recyclable. Such waste is returned as a new material.

How to record waste as a new material?

For example, you want to return waste from “Cardboard” as “Filler”. Do the following.

In the Technological Card, specify “Waste quantity” for the material and check the “Return waste to warehouse” box:

On the right, you’ll be able to select a material from the directory. Add “Filler” to the directory, select it, and enter it in the “Waste material” field. Click “Save”:

Now, after each operation, the program will write off 450 cm² of “Cardboard” and receive 90 cm² of “Filler”. 

Materials with returned waste can be viewed in the “Waste Receipt Acts” tab.