Stock Transforms
Convert one inventory item into another — unit conversions, repackaging, and splitting bulk stock.
A stock transform converts one item into another without any production labour or overhead — it is a pure unit conversion or repackaging operation. The classic example is breaking a case of 24 bottles into 24 individual bottle units, or repackaging bulk flour into 1kg retail packs. The total cost is conserved: whatever the source stock was worth, that value transfers to the output item.
Transform vs Recipe Transform vs Production
Choose Transform when:
- The conversion is purely mechanical — no labour cost to record, no overhead to allocate
- The output is essentially the same product in a different unit or packaging
- There is one source item and one target item
Choose Recipe Transform when several input items combine into one or more output items, still with no labour or overhead — the tile beside Transform opens a dialog with "Inputs consumed" and "Outputs produced" lists, a location, an optional additional cost with its cost account, a date and a note.
Choose Production when:
- Labour hours must be captured and costed
- Overhead (factory rent, machinery) is allocated to the output
- Multiple output types are produced (main product + co-products + waste)
Accessing Transforms
Navigate to: Operations → Inventories → select the source item → Adjustments tab → Transform tile
The Adjustments tab is available to administrators. The Transform tile is disabled while the item has no stock to convert.
Transform Fields
| Field | Required? | Details |
|---|---|---|
| Center | Yes | The business unit where the source stock is held and where the output will be received. The stock at each unit is shown in the picker. To convert stock held at a different unit, first transfer it there. |
| Source Quantity | Yes | The number of units of this item to consume. The form shows the stock available and refuses more than that. |
| Target Item | Yes | The item that results from the conversion. Must already exist with an inventory account. Any other Product or Material item — it does not need to share a category or sub-type with the source. |
| Target Quantity | Yes | The number of output units produced from the source quantity. This defines the conversion ratio. Example: 1 case (source) → 24 bottles (target). |
| Additional Cost | No | Any direct cost incurred in the conversion that is not already in the source stock value — for example, packaging bought specifically for this repack. Entered as a total amount, not per unit. |
| Additional Cost Account | If Additional Cost entered | The expense account the additional cost is drawn from. |
| Date | No | The date of the transform (defaults to today). This is the journal's business date. |
| Note | No | Description of the conversion — especially useful if the conversion ratio is non-obvious or if this is a one-off operation. |
Output Cost Calculation
The target item's cost per unit is calculated by the server as follows:
Total cost of transform = (Source Quantity × the source item's average cost) + Additional Cost
Cost per target unit = Total cost of transform divided by Target Quantity
The dialog previews Source cost, Additional Cost, Total cost and Cost Per Unit of Target as you type. On save, the target item's stock is increased at that cost per unit and its average cost blends accordingly.
Example:
- Source: 5 cases of paper at an average cost of 24.00 per case → source cost = 120.00
- Additional packaging cost: 5.00
- Output: 240 individual reams
- Cost per ream = (120.00 + 5.00) / 240 = 0.52 per ream
Transform Journal Entry
| Account | Debit | Credit | Description |
|---|---|---|---|
| Inventory Account — Target Item | Source Qty × source average cost, plus Additional Cost | — | Output item stock added to inventory at the transferred cost |
| Inventory Account — Source Item | — | Source Qty × source average cost | Source item stock reduced at its current average cost |
| Additional Cost Account (if entered) | — | Additional Cost amount | Additional conversion cost transferred into the output item value |
The transform also writes two movement rows: Transform Out on the source item and Transform In on the target item, both visible on their Movement tabs and in Adjustment History.
When no Additional Cost is entered, the transform is a pure balance sheet reclassification. Total inventory value does not change — value moves from the source item's inventory account to the target item's inventory account. An Additional Cost credits the expense account you chose, moving that cost into inventory.
Common Transform Scenarios
Case-to-unit breakdown: A food and beverage distributor purchases wine by the case (12 bottles) but sells by the bottle. A transform converts case stock into bottle stock at the point of breaking cases.
Bulk-to-retail repackaging: A commodity trader purchases olive oil in 200L drums and repacks into 500ml retail bottles. The transform reduces drum inventory and increases bottle inventory with the cost proportionally transferred.
Unit-of-measure standardization: Two items with different units (metres vs rolls) where one roll equals 50 metres. The transform converts roll stock to metre stock for consistent reporting.
Reclassification after a procurement error: Stock was received as "Item A" but should have been "Item B." A transform at zero additional cost corrects the classification with a clean journal trail rather than a manual adjustment.
Assembling a kit from parts: A gift box made of three separate stocked items is a Recipe Transform — three inputs consumed, one output produced, packaging cost added if needed.