Material balance means a factory can clearly account for every unit of raw material imported under BOI privilege. It shows transparency in how materials move through production and ensures the company uses tax-exempt imports correctly under the rules of the Thailand Board of Investment.

A proper material balance system should clearly demonstrate:

1. Imported Quantity
The total amount of raw material brought into Thailand under BOI duty-free privileges.

2. Production Usage
How much of that material was issued to the production process and actually used to manufacture products.

3. Finished Goods Output
The portion of material that successfully became finished products ready for sale or export.

4. Scrap, Waste, or Loss
The quantity that became defective parts, trimming waste, rejected items, or unavoidable process loss.

5. Remaining Stock
The balance of materials still stored in the warehouse or work-in-process inventory.