feat: allow to set valuation rate for Rejected Materials

erpnext/buying/doctype/buying_settings/buying_settings.json

@@ -12,21 +12,25 @@
   "column_break_4",
   "maintain_same_rate_action",
   "role_to_override_stop_action",
-  "transaction_settings_section",
+  "section_break_xmlt",
   "po_required",
-  "pr_required",
   "blanket_order_allowance",
+  "column_break_sbwq",
+  "pr_required",
   "project_update_frequency",
+  "transaction_settings_section",
+  "column_break_fcyl",
+  "set_landed_cost_based_on_purchase_invoice_rate",
+  "allow_zero_qty_in_supplier_quotation",
+  "use_transaction_date_exchange_rate",
+  "allow_zero_qty_in_request_for_quotation",
   "column_break_12",
   "maintain_same_rate",
-  "set_landed_cost_based_on_purchase_invoice_rate",
   "allow_multiple_items",
   "bill_for_rejected_quantity_in_purchase_invoice",
+  "set_valuation_rate_for_rejected_materials",
   "disable_last_purchase_rate",
   "show_pay_button",
-  "use_transaction_date_exchange_rate",
-  "allow_zero_qty_in_request_for_quotation",
-  "allow_zero_qty_in_supplier_quotation",
   "allow_zero_qty_in_purchase_order",
   "subcontract",
   "backflush_raw_materials_of_subcontract_based_on",
@@ -231,6 +235,26 @@
    "fieldname": "allow_zero_qty_in_supplier_quotation",
    "fieldtype": "Check",
    "label": "Allow Supplier Quotation with Zero Quantity"
+  },
+  {
+   "fieldname": "section_break_xmlt",
+   "fieldtype": "Section Break"
+  },
+  {
+   "fieldname": "column_break_sbwq",
+   "fieldtype": "Column Break"
+  },
+  {
+   "fieldname": "column_break_fcyl",
+   "fieldtype": "Column Break"
+  },
+  {
+   "default": "0",
+   "depends_on": "bill_for_rejected_quantity_in_purchase_invoice",
+   "description": "If enabled, the system will generate an accounting entry for materials rejected in the Purchase Receipt.",
+   "fieldname": "set_valuation_rate_for_rejected_materials",
+   "fieldtype": "Check",
+   "label": "Set Valuation Rate for Rejected Materials"
   }
  ],
  "grid_page_length": 50,
@@ -239,7 +263,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2025-05-06 15:21:49.639642",
+ "modified": "2025-05-16 15:56:38.321369",
  "modified_by": "Administrator",
  "module": "Buying",
  "name": "Buying Settings",

erpnext/buying/doctype/buying_settings/buying_settings.py

@@ -38,6 +38,7 @@ class BuyingSettings(Document):
 		project_update_frequency: DF.Literal["Each Transaction", "Manual"]
 		role_to_override_stop_action: DF.Link | None
 		set_landed_cost_based_on_purchase_invoice_rate: DF.Check
+		set_valuation_rate_for_rejected_materials: DF.Check
 		show_pay_button: DF.Check
 		supp_master_name: DF.Literal["Supplier Name", "Naming Series", "Auto Name"]
 		supplier_group: DF.Link | None
@@ -57,6 +58,9 @@ def validate(self):
 			hide_name_field=False,
 		)
 
+		if not self.bill_for_rejected_quantity_in_purchase_invoice:
+			self.set_valuation_rate_for_rejected_materials = 0
+
 	def before_save(self):
 		self.check_maintain_same_rate()
 

erpnext/controllers/buying_controller.py

@@ -681,6 +681,10 @@ def update_stock_ledger(self, allow_negative_stock=False, via_landed_cost_vouche
 						sl_entries.append(from_warehouse_sle)
 
 			if flt(d.rejected_qty) != 0:
+				valuation_rate_for_rejected_item = 0.0
+				if frappe.db.get_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials"):
+					valuation_rate_for_rejected_item = d.valuation_rate
+
 				sl_entries.append(
 					self.get_sl_entries(
 						d,
@@ -689,7 +693,7 @@ def update_stock_ledger(self, allow_negative_stock=False, via_landed_cost_vouche
 							"actual_qty": flt(
 								flt(d.rejected_qty) * flt(d.conversion_factor), d.precision("stock_qty")
 							),
-							"incoming_rate": 0.0,
+							"incoming_rate": valuation_rate_for_rejected_item,
 							"serial_and_batch_bundle": d.rejected_serial_and_batch_bundle,
 						},
 					)

erpnext/stock/doctype/purchase_receipt/purchase_receipt.py

@@ -531,6 +531,14 @@ def make_stock_received_but_not_billed_entry(item):
 				outgoing_amount = abs(get_stock_value_difference(self.name, item.name, item.from_warehouse))
 				credit_amount = outgoing_amount
 
+			if item.get("rejected_qty") and frappe.db.get_single_value(
+				"Buying Settings", "set_valuation_rate_for_rejected_materials"
+			):
+				outgoing_amount += abs(
+					get_stock_value_difference(self.name, item.name, item.rejected_warehouse)
+				)
+				credit_amount = outgoing_amount
+
 			if credit_amount:
 				if not account:
 					validate_account("Stock or Asset Received But Not Billed")
@@ -664,6 +672,14 @@ def make_divisional_loss_gl_entry(item, outgoing_amount):
 				valuation_amount_as_per_doc - flt(stock_value_diff), item.precision("base_net_amount")
 			)
 
+			if item.get("rejected_qty") and frappe.db.get_single_value(
+				"Buying Settings", "set_valuation_rate_for_rejected_materials"
+			):
+				rejected_item_cost = abs(
+					get_stock_value_difference(self.name, item.name, item.rejected_warehouse)
+				)
+				divisional_loss -= rejected_item_cost
+
 			if divisional_loss:
 				loss_account = (
 					self.get_company_default("default_expense_account", ignore_validation=True)
@@ -751,13 +767,23 @@ def make_divisional_loss_gl_entry(item, outgoing_amount):
 					make_sub_contracting_gl_entries(d)
 					make_divisional_loss_gl_entry(d, outgoing_amount)
 			elif (d.warehouse and d.warehouse not in warehouse_with_no_account) or (
-				d.rejected_warehouse and d.rejected_warehouse not in warehouse_with_no_account
+				not frappe.db.get_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials")
+				and d.rejected_warehouse
+				and d.rejected_warehouse not in warehouse_with_no_account
 			):
 				warehouse_with_no_account.append(d.warehouse or d.rejected_warehouse)
 
 			if d.is_fixed_asset and d.landed_cost_voucher_amount:
 				self.update_assets(d, d.valuation_rate)
 
+			if d.rejected_qty and frappe.db.get_single_value(
+				"Buying Settings", "set_valuation_rate_for_rejected_materials"
+			):
+				stock_value_diff = get_stock_value_difference(self.name, d.name, d.rejected_warehouse)
+				stock_asset_account_name = warehouse_account[d.rejected_warehouse]["account"]
+
+				make_item_asset_inward_gl_entry(d, stock_value_diff, stock_asset_account_name)
+
 		if warehouse_with_no_account:
 			frappe.msgprint(
 				_("No accounting entries for the following warehouses")

erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py

@@ -4233,6 +4233,126 @@ def get_sabb_qty(sabb):
 		# Test 3 - OverAllowanceError should be thrown as qty is greater than qty in DN
 		self.assertRaises(erpnext.controllers.status_updater.OverAllowanceError, pr.submit)
 
+	def test_valuation_rate_for_rejected_materials(self):
+		item = make_item("Test Item with Rej Material Valuation", {"is_stock_item": 1})
+		company = "_Test Company with perpetual inventory"
+
+		warehouse = create_warehouse(
+			"_Test In-ward Warehouse",
+			company="_Test Company with perpetual inventory",
+		)
+
+		rej_warehouse = create_warehouse(
+			"_Test Warehouse - Rejected Material",
+			company="_Test Company with perpetual inventory",
+		)
+
+		frappe.db.set_single_value("Buying Settings", "bill_for_rejected_quantity_in_purchase_invoice", 1)
+
+		frappe.db.set_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials", 1)
+
+		pr = make_purchase_receipt(
+			item_code=item.name,
+			qty=10,
+			rate=100,
+			company=company,
+			warehouse=warehouse,
+			rejected_qty=5,
+			rejected_warehouse=rej_warehouse,
+		)
+
+		stock_received_but_not_billed_account = frappe.get_value(
+			"Company",
+			company,
+			"stock_received_but_not_billed",
+		)
+
+		rejected_item_cost = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{
+				"voucher_type": "Purchase Receipt",
+				"voucher_no": pr.name,
+				"warehouse": rej_warehouse,
+			},
+			"stock_value_difference",
+		)
+
+		self.assertEqual(rejected_item_cost, 500)
+
+		srbnb_cost = frappe.db.get_value(
+			"GL Entry",
+			{
+				"voucher_type": "Purchase Receipt",
+				"voucher_no": pr.name,
+				"account": stock_received_but_not_billed_account,
+			},
+			"credit",
+		)
+
+		self.assertEqual(srbnb_cost, 1500)
+
+		frappe.db.set_single_value("Buying Settings", "bill_for_rejected_quantity_in_purchase_invoice", 0)
+
+		frappe.db.set_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials", 0)
+
+	def test_no_valuation_rate_for_rejected_materials(self):
+		item = make_item("Test Item with Rej Material No Valuation", {"is_stock_item": 1})
+		company = "_Test Company with perpetual inventory"
+
+		warehouse = create_warehouse(
+			"_Test In-ward Warehouse",
+			company="_Test Company with perpetual inventory",
+		)
+
+		rej_warehouse = create_warehouse(
+			"_Test Warehouse - Rejected Material",
+			company="_Test Company with perpetual inventory",
+		)
+
+		frappe.db.set_single_value("Buying Settings", "bill_for_rejected_quantity_in_purchase_invoice", 0)
+
+		frappe.db.set_single_value("Buying Settings", "set_valuation_rate_for_rejected_materials", 0)
+
+		pr = make_purchase_receipt(
+			item_code=item.name,
+			qty=10,
+			rate=100,
+			company=company,
+			warehouse=warehouse,
+			rejected_qty=5,
+			rejected_warehouse=rej_warehouse,
+		)
+
+		stock_received_but_not_billed_account = frappe.get_value(
+			"Company",
+			company,
+			"stock_received_but_not_billed",
+		)
+
+		rejected_item_cost = frappe.db.get_value(
+			"Stock Ledger Entry",
+			{
+				"voucher_type": "Purchase Receipt",
+				"voucher_no": pr.name,
+				"warehouse": rej_warehouse,
+			},
+			"stock_value_difference",
+		)
+
+		self.assertEqual(rejected_item_cost, 0.0)
+
+		srbnb_cost = frappe.db.get_value(
+			"GL Entry",
+			{
+				"voucher_type": "Purchase Receipt",
+				"voucher_no": pr.name,
+				"account": stock_received_but_not_billed_account,
+			},
+			"credit",
+		)
+
+		self.assertEqual(srbnb_cost, 1000)
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier