Hi Harnish
This is a peculiar scenario in many companies.
The reasonable options I would suggest and I have seen are
1) Create another material by prefixing, say, "D" to existing material code.. Example Mat D1234 for material 1234
Transfer the stock from 1234 to D1234 and activate the DO NOT COST indicator for D1234.. May be you can have Price control V for D1234
2) Let it revaluate and you post a correction JV every month..
Create a special storage location to keep track of such defective units.. Whatever stock is available in that SLOC, pass a JV for the same
3) Another option (I wont recommend) is to have a Dummy sales order and transfer all such stocks against this sales order... This would save you duplicate material code, but I somehow dont prefer this
I would suggest between 1 and 2
Br, Ajay M