What is Wastage?
Wastage is stock that is damaged, spoilt, expired or used up without being sold, and must be written off.
Updated
Meaning
English
Wastage is stock that is damaged, spoilt, expired or used up without being sold, and must be written off.
Roman Urdu
Wastage woh maal hai jo toot jaye, kharab ho, expire ho ya bike baghair zaya ho jaye aur use khaate se nikalna pare.
Also called waste, damage, spoilage, write-off, zaya.
Example
A bakery records at closing: 18 buns unsold and stale, 2 cakes dropped, 3 kg of cream spoilt during a power cut. The wastage is valued at cost and shows in the month's loss report.
How it works
Some wastage is unavoidable in food, bakery, dairy, meat, flowers and pharmacy. The problem is wastage that is never recorded, which makes stock wrong and hides how much money is being lost. Load-shedding without backup cooling is a common cause in Pakistan.
Record wastage as it happens, with a reason, the quantity and who reported it; have a manager approve it so it cannot hide theft; and review it by product and reason. Patterns tell you what to change: smaller batches, better storage, earlier offers, or a different supplier.
In Nafaa
The Nafaa damage and wastage page lets staff report damaged, expired or spoilt goods. A manager approves or rejects each report; approved lines leave stock and show on the adjustments page, and analytics show where the loss comes from.
Related terms
- Shrinkage
Shrinkage is stock that is lost without being sold, through theft, damage, spoilage, counting mistakes or supplier short deliveries.
- Expiry Management
Expiry management is the routine of tracking expiry dates, selling near-expiry stock in time, and removing or returning expired goods before they reach customers.
- Food Cost Percentage
Food cost percentage is the cost of the ingredients in a dish or in all food sold, divided by the selling price or food sales.
- Stock Adjustment
A stock adjustment is a manual correction to a product's stock quantity, with a reason, when the system figure does not match reality.