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Wondering how people deal with inventory which is consumed internally. I need to set the items to storeable products so that we can use auto replenishment rules. How do people decrement stock when they are used and not sold? 

Let's say for example, we may use boxes of nails which are issued from stores however we do not sell directly but we do use. How should we decrement the quantity when someone requests a new box? 

Doing an inventory adjustment each time does not seem like the right thing to do.

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Thank you so much Adithya. This is exactly what I was looking for. Thanks to all who responded.

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Create an LOCATION that you can move your Products to when they are consumed

The Outgoing Stock Valuation account is the Expense account you want debited when you consume the product(s).

If you have more than one Expense account, create more than one location.


Then create a Scrap operation each time you consume something


This will decrease your inventory quantity and value, and expense the cost.


From the location you can see all products that have been consumed.

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