Commodity Trading Workflow
The Commodity Trading workflow is designed for businesses that trade products such as oil, chemicals, and other liquids, where product loss may occur during storage or delivery. This workflow helps you track those losses and issue customer invoices accurately.
How to enable this module:
Go to Company Settings.
In the App Settings, open System Settings.
Turn on the Commodity Trading option.
How to Create a Commodity Purchase Order
Step 1: Start a new Commodity Purchase Order
Click into the New Purchase Order dropdown list and choose 'New Commodity Purchase Order.'
Step 2: Place the order
Input the items you want to purchase with their quantities and click 'Save.'
Receive a Commodity Purchase Order (Receive Note)
Step 1: Issue the Receive Note
When the goods arrive, click on Receive's dropdown list and choose the suitable kind of Receive Note you want to create (Fully received/ Partial Receive)
Step 2: Enter received goods data
Fill in the details for the goods received:
Receive Location (e.g. Store B)
Received Quantity (the actual quantity you received)
When done, click 'Save' at the top.
Warehouse Loss Rate
For products like oil or chemical liquids, it’s common to experience minor losses during delivery and storage (for example, from leakage or evaporation).
You can set up a Warehouse Loss Rate to define the allowable loss for each warehouse. Later, in the Purchase Loss Report, you can see:
Shortages – the difference between expected and received quantities.
Allowable (natural) loss – based on the warehouse loss rate.
Actual loss – calculated from the shortage minus the natural loss.
Step 3: Confirm order status as Fully Received
After you issued Received Notes, If there is a loss in the received goods, the status will show as 'Partially Received.'
Once you have finished receiving all goods from the supplier:
Open the Receive dropdown.
Click 'Change status to Received' to confirm full received.
The Purchase Order Receive status will update to 'Received,' meaning everything is fully received. You can then issue the supplier invoice.
Issue Commodity Supplier Invoice
Step 1: Create the invoice
Once products are fully received, click Invoice everything to start issuing the supplier invoice.
Step 2: Review received items
The system will automatically calculate the actual quantity received after subtracting the actual lost from the expected quantity sent by supplier.
The total price will be based on this actual quantity received.
Click Save when done.
Note:
This supplier invoice is based on the actual quantity received after deducting the allowance loss. Therefore, for cost transparency, you should use the warehouse loss ratio to accurately invoice for the shortage quantity in case of excessive loss. Lookup: Commodity Flow | How to set Warehouse Loss Rate
If you want to keep the original price based on the supplier's quotation (e.g. when the loss is small), you can adjust the quantity yourself to match the purchase price.
Step 3: Pay the bill
Click 'Pay Bill' to proceed the payment for supplier invoice.
