Shrinkage

You may wish to account for shrinkage (wastage) in manufacturing by one of two methods:

Shrinkage Factor. You may use the Shrinkage percentage column on the material list to define a percentage of the total units used in a Factory process that should be added to the total usage of a component. This allows you to keep more accurate stock on hand of your materials however it does not give you accurate details of your actual shrinkage. The actual shrinkage can only be calculated by taking the stocktake variation and adding the Shrinkage percentage of all Usage for the period.
Shrinkage Measure. With this method you do not enter a shrinkage percentage on your material list. This means that your computer stock on hand figure is ignorant of loss due to shrinkage until a stocktake is executed. The advantage of this method is that the stocktake variation report represents your total shrinkage for the component.

Last updated 4 years ago

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You may wish to account for shrinkage (wastage) in manufacturing by one of two methods:

Shrinkage Factor. You may use the Shrinkage percentage column on the material list to define a percentage of the total units used in a Factory process that should be added to the total usage of a component. This allows you to keep more accurate stock on hand of your materials however it does not give you accurate details of your actual shrinkage. The actual shrinkage can only be calculated by taking the stocktake variation and adding the Shrinkage percentage of all Usage for the period.
Shrinkage Measure. With this method you do not enter a shrinkage percentage on your material list. This means that your computer stock on hand figure is ignorant of loss due to shrinkage until a stocktake is executed. The advantage of this method is that the stocktake variation report represents your total shrinkage for the component.

Last updated 4 years ago

Was this helpful?