diff --git a/erpnext/manufacturing/doctype/work_order/work_order.py b/erpnext/manufacturing/doctype/work_order/work_order.py
index c37a1c9..1cdbc5f 100644
--- a/erpnext/manufacturing/doctype/work_order/work_order.py
+++ b/erpnext/manufacturing/doctype/work_order/work_order.py
@@ -233,6 +233,7 @@
 						SELECT name FROM `tabStock Entry`
 						WHERE
 							work_order=%s
+							AND purpose='Manufacture'
 							AND docstatus=1
 					)
 			""", (self.name, ))[0][0])
diff --git a/erpnext/stock/report/process_loss_report/__init__.py b/erpnext/stock/report/process_loss_report/__init__.py
new file mode 100644
index 0000000..e69de29
--- /dev/null
+++ b/erpnext/stock/report/process_loss_report/__init__.py
diff --git a/erpnext/stock/report/process_loss_report/process_loss_report.js b/erpnext/stock/report/process_loss_report/process_loss_report.js
new file mode 100644
index 0000000..078b9e1
--- /dev/null
+++ b/erpnext/stock/report/process_loss_report/process_loss_report.js
@@ -0,0 +1,37 @@
+// Copyright (c) 2016, Frappe Technologies Pvt. Ltd. and contributors
+// For license information, please see license.txt
+/* eslint-disable */
+
+frappe.query_reports["Process Loss Report"] = {
+	filters: [
+    {
+      label: __("Company"),
+      fieldname: "company",
+      fieldtype: "Link",
+      options: "Company",
+      mandatory: true,
+      default: frappe.defaults.get_user_default("Company"),
+    },
+		{
+      label: __("Item"),
+      fieldname: "item",
+      fieldtype: "Link",
+      options: "Item",
+      mandatory: false,
+		},
+    {
+      label: __("From Date"),
+      fieldname: "from_date",
+      fieldtype: "Date",
+      mandatory: true,
+      default: frappe.datetime.year_start(),
+    },
+    {
+      label: __("To Date"),
+      fieldname: "to_date",
+      fieldtype: "Date",
+      mandatory: true,
+      default: frappe.datetime.get_today(),
+    },
+	]
+};
diff --git a/erpnext/stock/report/process_loss_report/process_loss_report.json b/erpnext/stock/report/process_loss_report/process_loss_report.json
new file mode 100644
index 0000000..afe4aff
--- /dev/null
+++ b/erpnext/stock/report/process_loss_report/process_loss_report.json
@@ -0,0 +1,29 @@
+{
+ "add_total_row": 0,
+ "columns": [],
+ "creation": "2021-08-24 16:38:15.233395",
+ "disable_prepared_report": 0,
+ "disabled": 0,
+ "docstatus": 0,
+ "doctype": "Report",
+ "filters": [],
+ "idx": 0,
+ "is_standard": "Yes",
+ "modified": "2021-08-24 16:38:15.233395",
+ "modified_by": "Administrator",
+ "module": "Stock",
+ "name": "Process Loss Report",
+ "owner": "Administrator",
+ "prepared_report": 0,
+ "ref_doctype": "Work Order",
+ "report_name": "Process Loss Report",
+ "report_type": "Script Report",
+ "roles": [
+  {
+   "role": "Manufacturing User"
+  },
+  {
+   "role": "Stock User"
+  }
+ ]
+}
\ No newline at end of file
diff --git a/erpnext/stock/report/process_loss_report/process_loss_report.py b/erpnext/stock/report/process_loss_report/process_loss_report.py
new file mode 100644
index 0000000..be0f015
--- /dev/null
+++ b/erpnext/stock/report/process_loss_report/process_loss_report.py
@@ -0,0 +1,132 @@
+# Copyright (c) 2013, Frappe Technologies Pvt. Ltd. and contributors
+# For license information, please see license.txt
+
+import frappe
+from typing import Dict, List, Tuple
+
+Filters = frappe._dict
+Row = frappe._dict
+Data = List[Row]
+Columns = List[Dict[str, str]]
+QueryArgs = Dict[str, str]
+
+def execute(filters: Filters) -> Tuple[Columns, Data]:
+	columns = get_columns()
+	data = get_data(filters)
+	return columns, data
+
+def get_data(filters: Filters) -> Data:
+	query_args = get_query_args(filters)
+	data = run_query(query_args)
+	update_data_with_total_pl_value(data)
+	return data
+
+def get_columns() -> Columns:
+	return [
+		{
+			'label': 'Work Order',
+			'fieldname': 'name',
+			'fieldtype': 'Link',
+			'options': 'Work Order',
+			'width': '200'
+		},
+		{
+			'label': 'Item',
+			'fieldname': 'production_item',
+			'fieldtype': 'Link',
+			'options': 'Item',
+			'width': '100'
+		},
+		{
+			'label': 'Status',
+			'fieldname': 'status',
+			'fieldtype': 'Data',
+			'width': '100'
+		},
+		{
+			'label': 'Qty To Manufacture',
+			'fieldname': 'qty',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+		{
+			'label': 'Manufactured Qty',
+			'fieldname': 'produced_qty',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+		{
+			'label': 'Process Loss Qty',
+			'fieldname': 'process_loss_qty',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+		{
+			'label': 'Actual Manufactured Qty',
+			'fieldname': 'actual_produced_qty',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+		{
+			'label': 'Total FG Value',
+			'fieldname': 'total_fg_value',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+		{
+			'label': 'Total Raw Material Value',
+			'fieldname': 'total_rm_value',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+		{
+			'label': 'Total Process Loss Value',
+			'fieldname': 'total_pl_value',
+			'fieldtype': 'Float',
+			'width': '150'
+		},
+	]
+
+def get_query_args(filters: Filters) -> QueryArgs:
+	query_args = {}
+	query_args.update(filters)
+	query_args.update(
+		get_filter_conditions(filters)
+	)
+	return query_args
+
+def run_query(query_args: QueryArgs) -> Data:
+	return frappe.db.sql("""
+		SELECT 
+			wo.name, wo.status, wo.production_item, wo.qty,
+			wo.produced_qty, wo.process_loss_qty,
+			(wo.produced_qty - wo.process_loss_qty) as actual_produced_qty,
+			sum(se.total_incoming_value) as total_fg_value,
+			sum(se.total_outgoing_value) as total_rm_value
+		FROM
+			`tabWork Order` wo INNER JOIN `tabStock Entry` se
+			ON wo.name=se.work_order
+		WHERE
+			process_loss_qty > 0
+			AND wo.company = %(company)s
+			AND se.docstatus = 1
+			AND se.posting_date BETWEEN %(from_date)s AND %(to_date)s
+			%(item_filter)s
+		GROUP BY
+			se.work_order
+	""", query_args, as_dict=1)
+
+def update_data_with_total_pl_value(data: Data) -> None:
+	for row in data:
+		value_per_unit_fg = row['total_fg_value'] / row['actual_produced_qty']
+		row['total_pl_value'] = row['process_loss_qty'] * value_per_unit_fg
+
+def get_filter_conditions(filters: Filters) -> QueryArgs:
+	filter_conditions = dict(item_filter="")
+	if "item" in filters:
+		production_item = filters.get("item")
+		filter_conditions.update(
+			{"item_filter": f"wo.production_item='{production_item}'"}
+		)
+	return filter_conditions
+