Natural loss allowances in general terms

A storekeeper at a bazaar depot took in 2,000 kilograms of dried apricots. Three months later a count showed 1,974 kilograms. Where did the twenty-six kilograms go? The answer is often undramatic: the fruit dried out, fine crumbs settled at the bottom of the sack, and the scales and humidity played their part. Some goods lose weight in storage and in transport. That kind of loss is called natural loss, and within certain limits it is allowed. The trouble is that most people either do not know those limits or treat them as "a shield that covers everything".

What natural loss is and is not

It is a reduction in weight or volume caused by the nature of the goods themselves: dry products lose moisture, liquid in an open container evaporates, loose goods spill a little when a sack is opened, poured or carried. Nobody is at fault.

Natural loss is not a counting or paperwork error, not breakage or rot (that is spoilage), and certainly not theft. It can be claimed only for goods whose weight changes by a measurable amount. These are most often:

• dried fruit and nuts, raisins, apricots;
• fresh produce such as potatoes, onions, carrots and grapes;
• flour, sugar, rice, salt and grain;
• cement, gypsum and other dry mixes;
• fuel and other liquids;
• frozen meat and fish (during thawing).

In goods sealed at the factory, such as canned food or glass containers, this kind of loss is not normally expected. If a shortage turns up there, the cause lies elsewhere.

How an allowance works

An allowance states the maximum permitted loss for a given type of goods, conditions and period, usually as a percentage. It is affected by the type of goods, the storage time, the packaging (sealed or open), temperature and humidity, the transport distance and the season.

Allowances and the rules for applying them are set by legislation, industry documents and the organisation's own internal order. Take exact values only from those documents, in their current version, and check them with an accountant or lawyer. We give no figures in this article, because the most common mistake is an allowance copied from an outdated table. One more thing: an allowance permits, it does not oblige. It does not mean "write off this much every time"; if actual loss is below the allowance, only the actual loss is recorded.

The logic of the calculation: a hypothetical example

Permitted loss = balance (or turnover) × allowance. The result is subtracted from the actual shortage, and the rest is investigated separately. The numbers below are invented only to show the logic; take the real allowance from the document.

Suppose the hypothetical allowance is 0.5 percent:

1. 2,000 kg × 0.5% = 10 kg of permitted loss.
2. The actual shortage is 26 kg, of which 10 kg falls within the allowance.
3. 26 − 10 = 16 kg beyond the allowance.
4. At 40,000 so'm per kilogram: 400,000 so'm is written off by report as natural loss, and the cause of 640,000 so'm is studied separately.

So the disputed amount fell from 1,040,000 to 640,000 so'm, and the remaining part needs a real explanation: perhaps the scales, perhaps a document, perhaps something else.

Typical mistakes

• the allowance is written off "automatically" at its upper limit every time, even when actual loss is small, which hides a genuine shortage;
• the allowance is applied to goods it was not meant for;
• the time is ignored: a half-year allowance is applied to goods that sat for two weeks;
• the scales are unchecked or the weight of the packaging has not been deducted, and this looks like natural loss;
• the decision is taken without documents.

How to reduce the loss

If the allowance is a ceiling, the aim is to stay well below it. Keep goods in a dry, clean, closed room, place opened sacks separately and note what is left in them. Use the same scales at receiving and at the count, and check them regularly. Sell batches on a first-in, first-out basis so that goods do not sit and dry out. Watching humidity and temperature also settles a lot.

Conclusion

Natural loss is a real phenomenon, but it has a permitted limit. Loss within the limit is recognised by a document, and anything above it is a shortage whose cause must be found. The Reviziya team can help apply allowances correctly and set up a weighing routine at receiving.