Understanding the Scratch and Dent Feature
The Scratch and Dent module is aimed at improving how businesses handle products with minor damage. Whether it’s a chair with a scratch or an air conditioner returned by a customer, the new module enables businesses to classify these items separately from standard inventory.
When an item arrives with cosmetic imperfections or is returned due to minor damage, it can now be flagged as a “scratch and dent” product. This reclassification includes creating a new SKU, adjusting the sales price accordingly, and accurately reflecting the financial implications—such as the cost of goods sold and potential losses—within the system.
Creating and Managing Scratch and Dent Products
There is a simple step-by-step process for creating a new product listing, such as a slightly scratched chair, in the Scratch and Dent module. The workflow involves:
- Assigning the item to a specific category.
- Setting a revised sales price based on its condition.
- Recording the current stock levels and adding relevant images.
- Generating a new SKU that distinguishes the scratch and dent item from standard inventory.
This process is designed to be flexible and can be applied to any type of product, regardless of its condition or category.
Managing Stock Transactions and Warehouse Transfers
The Scratch and Dent module also allows for efficient inventory tracking and movement across warehouses. When a product is moved into the scratch and dent category, the system automatically updates the stock asset and creates a corresponding entry to reflect the depreciation in value. This transparent accounting helps businesses manage financial reporting and stock valuation with greater accuracy.
This feature applies not only to newly damaged items, but also to sales returns. Returned products are reassigned to the scratch and dent category while maintaining their original serial numbers, ensuring traceability and integrity in the inventory system.
Handling Sales Returns with Precision
One of the standout capabilities of the module is how it handles sales returns. Users can document returned items by recording details such as the reason for return and the customer’s name. The system then facilitates the reassignment of the product to the scratch and dent warehouse, while keeping its original serial number intact. This streamlined process ensures that all product lifecycle data is preserved and easily auditable.
Expense Accounts, Product Categories, and Automation
In addition to inventory and sales management, the Scratch and Dent module also integrates seamlessly with expense account tracking and product categorization. For example, if a damaged mattress is being resold at a discounted price, users can assign the appropriate sales price, correct stock levels, and update all relevant fields—including images and descriptions—automatically. This reduces manual effort and minimizes the risk of errors in product listings.
Managing Serialized Products
The new module also supports serialized product management—a critical feature for industries dealing with high-value items like air conditioners. Serial numbers are automatically tracked and transferred across warehouses, and products flagged as scratch and dent continue to carry their serial history. This ensures consistent product tracking throughout its lifecycle, even after damage or return.
Conclusion
AltheaSuite’s Scratch and Dent module is a robust solution for businesses looking to better manage imperfect inventory. From enhanced tracking of serialized products to accurate financial reporting and streamlined warehouse transfers, this module offers the tools necessary to maintain control and transparency across the supply chain. With the ability to reclassify, resell, and report on damaged goods effectively, businesses can turn what was once a loss into a new sales opportunity.
For more information or to enable the Scratch and Dent module in your AltheaSuite account, reach out to our product experts today.


