HI All,
We recently had an SQF audit where our auditor questioned why we had so many manual adjustments for an raw material in our ERP system (after multiple inventory adjustments. We make adjustments to the specific raw material in our ERP system based on what our batching sheets indicate we use and what our weekly cycle counts indicate. For example, we have a production run that used 15kg extra chocolate chips of a lot. We received in a specific amount of that lot, say 1,800kg, and our ERP system indicated that we should not have that extra 15kg, but we in actuality do have it and used it in a production run. This happens to us frequently and as such, we make an inventory adjustment to add that 15kg into the received lot so we can trace the raw material in the finished product. What are the best practices around over or under weight raw materials and how you trace that into your finished product? Are we doing the right thing or should we modify our current practices? How do you account for ingredient loss due to production processes, for example pumping butter into a mixer?
Thank you!