Repack Entry is created for item bought in bulk, which is being packed into smaller packages. For example, item bought in tons can be repacked into Kgs.
Assume we are buying boxes of spray paint of specific colour (Green, Blue etc). And later re-bundling to create packs having multiple colours of spray paint (Blue-Green, Green-Yellow etc.) in them.
On submitting Stock Entry, stock of input item will be reduced from Source Warehouse, and stock of repack/output item will be added in the Target Warehouse.