How do you evaluate and manage the inventory materials against damage inventory materials during physical inventory?

Dear, As evaluation of Inventory can be done by physical count and verify the stock matches with system balance and than the final count would be the Inventory Valuation. Now the Damage Inventory during the Inventory count, first we need to consider the Inventory in the inventory value and the Total cost of Damage inventory we need to first consider in the Inventory. After the inventory Valuation we have to remove that inventory from system- As inventory loss (reason would be Damage). 

If the Inventory count done by the third party than that loss we can claim from the Third party, It depends upon the management that they will recover it by MRP or by Cost. 

If the Inventory count done by staff than the loss would be write as Inventory loss (Damage) but in remarks they need to mentioned the reason for the damage. 

Hope this might help.

Happy to Help

Rohit Varde

Will ascertain that damages are on account of storage constraint or caused due to some negligence from supplier side to evaluate the loss. For damage stock will see the shortfall of material and place and order for replacement.