After purchase and receipt of material some stock quantity may become expired on the shelves, or get spoilt in the godown or is received in breakages, spoilt condition. Such products which are not sold to anyone but have become spoilt will need to be transferred to Bad / Spoilt Stock so that they can be transferred back to supplier and be treated as purchase returns or loss through damages.
This internal stock transfer is done for expiring good and breakages / spoilt goods.
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