# Inventory Transformation

### **Module Guide: Inventory Transformation**

#### **Module Location**

#### Inventory > Inventory Adjustment > Inventory Transformation

#### **Module Objective**

#### The **Inventory Transformation** module is a transactional tool used to record the process of transforming or converting one or more inventory items (input) into another inventory item (output). This module is very useful for recording activities such as:

- #### **Rework**: Reprocessing products that did not pass QC into usable materials again.
- #### **Repacking**: Changing packaging, for example, from bulk packaging to smaller packaging.
- #### **Kitting/Assembly**: Combining several components into a single new package item (SKU).

### **1. Main View (Transformation List)**

#### The main page of this module displays a list of all inventory transformation transaction documents that have been created.

#### **View and Key Button Functions**

- #### **View**: This page is a history of transformation documents. You can see the **Doc. Number, Date, Memo** (which explains the type of transformation), and **Approval Status**.
- #### **Action Buttons**:
    
    
    - #### **\[New\]**: To create a new transformation transaction manually from scratch.
    - #### **\[New From Formula\]**: To create a transformation transaction based on a pre-defined recipe or formula.
    - #### **\[Void\]**: To cancel a transformation transaction that has already been created.

### **2. Steps to Perform an Inventory Transformation**

#### **Step 1: Create a New Document**

#### From the main page, click **\[New\]** to open the Inventory Transformation form.

#### **Step 2: Fill in Details**

1. #### Select the source **Warehouse** and **Source Bin** as well as the **Destination Bin**.
2. #### Fill in the **Memo** with a clear description of the process being performed.
3. #### **Items to be Converted (Input)**: In the top table, click **\[+\]**, then select the item(s) and enter the quantity that will be consumed or transformed.
4. #### **Resulting Items from Conversion (Output)**: In the bottom table, click **\[+\]**, then select the item(s) and enter the quantity that will be produced from this process.
5. #### Click **\[Confirm\]** to submit the transaction.

### **3. Process Results**

#### After the transformation transaction is confirmed and approved, the system will automatically perform two stock movements:

1. #### **Goods Issue**: Reduces the stock quantity of the **INPUT** items.
2. #### **Goods Receipt**: Increases the stock quantity for the **OUTPUT** item.

### **Tips & Important Notes**

- #### This module is very useful for the **Production and Warehouse teams** to record simple transformation processes that occur outside of the formal production workflow.
- #### Using the **\[New From Formula\]** feature is highly recommended to maintain the consistency and accuracy of the input-output ratio in every transformation process.