A processing note is created if, as a result of production, the goods item has turned into another product or set of goods, for example, when cutting a carcass. It is also convenient to use a processing note in case of goods misgrading: for example, tomatoes are listed on the balances, but in fact they are Cherry tomatoes. The self-cost of a goods item or a set of goods obtained as a result of processing is calculated based on the goods self-cost before the processing. The goods before the processing are written off from one department of the enterprise. The received goods or a set of goods after processing are received at another department — the recipient one. The same department can act as the supplier and the recipient.
For example, a batch of chickens was purchased. As a result of cutting, the processing department received breasts, thighs, drumsticks, and transferred the received goods to production. The self-cost of a batch of chickens must be transferred to the processed goods.
Also, the processing note can be used in cases where different production departments work with different goods groups and, in this regard, several goods cards have been entered for one goods item. In this case, the processing note can be used as an analog of an internal transfer, but, unlike it, the list of received goods will differ from the list of written-off ones.