1. Document Type

Let us look at an example when it is set for manufacturing (work orders) document type that the quantity of shrinkage will be added to the quantity produced.

First let us take a look at the net method.

2. Product Specification

First set method to product. The only difference between the net and gross methods is that specification is created in a different way.

• (To issue material shrinkage you need not use internal document of issue (710).)
• To issue product shrinkage using internal documents use document type 710.
• Let su try and produce the following: PRODNET, where product quantity is 8 pieces and shrinkage is 2 pieces (total: PRODNET, 10 pieces). MATERIAL01 represents the first assembly part used in production; quantity used is equivalent to 20 pieces and no shrinkage occurs. MATERIAL02 represents the second assembly part used in production; 10 pieces and not shrinkage occurs.
• (To do this you have to set item type 300 in the Items register.)

3. Work Order

Issue a work order ONLY for production of as many pieces of product as will be delivered on stock (using the net method). That is, 8 pieces.

When processing work order shrinkage is displayed per unit (Shrinkage/1) of product and components and total product quantity and material shrinkage (Shrinkage). We defined only product shrinkage.

    4. Receiving of Products

Internal receiving of product (according to the settings of work order document type document type 610 is used):

  5. Product Shrinkage

Internal receiving of product shrinkage (document type 710)

  6. Issuing Used Materials

Internal issue of used materials (document type 640):

7. Cost Analysis

If you compare cost analysis with the one you got using a norm or product specification created by gross method, you can see that material consumption and value of product match.