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Inventory consumed interally

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Wombat

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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Wombat
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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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Adithya
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Create a consumption location, that is create a location with location type as virtual location/production. Create an operation type with source location set as the location of your inventory and destination location as the newly created consumption location. The type of operation will be set as internal transfer for the newly created operation type. 

You can use this operation type for showing the consumption and reduce the inventory. This gives good traceability and reporting.

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Balagopal R
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You can create a new location (Inventory Loss). And whenever you use the item, create an internal transfer to that location.

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Adithya
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If the destination location type is kept as inventory loss, Odoo treats the transaction to this location as an inventory adjustment. Also, as the inventory is being consumed for production, it is better practice to keep the destination location type as production type.

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Rajesh R
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Since the items  are being used internally, possible way I believe would be to remove it :
1. by creating a transfer, to scrap/production type virtual locations 
or
2. by inventory adjustment.


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