Inventory Regrading Software for Circular Economy Operations

What is a regrade in Loop ERP?

A regrade is a transaction that reclassifies material from one grade or item to another when its quality, condition, or market value changes. For example, a mixed load sorted into separate grades, a returned unit downgraded to parts only, or recovered components moved into reusable stock. Each regrade records the quantities and items involved and keeps traceability back to the original inbound ticket.

How do regrades affect inventory value and the general ledger?

Regrades reallocate value between inventory items with no net GL impact. Value moves from the original grade to the new one, so inventory valuation reflects what you actually hold without creating gains or losses on the regrade itself. Because Loop ERP is built natively inside NetSuite, the regrade posts as soon as it is recorded and finance sees the updated inventory immediately.

Can I trace regraded material back to where it came from?

Yes. Regrades preserve traceability back to the original inbound ticket, including the supplier, lot, and receipt details. That lets you answer questions about where a grade came from, check results against what a supplier delivered, and support settlement or quality discussions. For full chain of custody through processing and sale, see Track and Trace.

Does regrading work for returns and refurbished goods, not just scrap?

Yes. You define the grades and items that fit your operation, so the same regrade process covers scrap and metal grades, condition grades for returned or refurbished products, and components recovered through disassembly. Grade changes can follow inspections from Quality Control, and production records track yield and recovery when material is processed or broken down.