documents used in purchase and stores procedure
TRANSCRIPT
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7/30/2019 Documents Used in Purchase and Stores Procedure
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Documents used in Purchase and Stores
Procedure
The following documents are generally used for purchase, storage,control etc. of materials:
(i) Bill of Materials: This is a document prepared by the Design,
or Engineering, or Production planning and control department. It
shows the materials required for a particular job, contract, or work.
In other words, this contains the estimated or normative quantity
required.
(ii) Purchase Requisition: This is a document which is prepared
by the stores department. It shows the materials required by the
stores department. The purchase requisition is raised when the
reorder level of materials is reached. This is sent to the purchase
department and acts as an authorization for the purchase of
materials.
(iii) Purchase Order: This document is prepared by the purchase
department. It shows the material code, description specifications,quantity, job or contract against which required, unit price of
materials, total value of order, expected delivery date, taxes and
duties, terms of payment, place of delivery, other terms and
conditions etc.
(iv) Inspection Note: This document is prepared by the inspection
department. It shows the materials inspected by the Inspection
department. The material inspection note is a document whichshows the material code, description, specifications, quantity
received for inspection, quantity accepted, quantity rejected,
reasons for rejection etc.
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(v) Goods Received Note: This document is prepared by the stores
department. It shows the materials received from the suppliers. The
goods received note is a document which shows the material code,
description, specification, quantity, unit price and value of
materials.
(vi) Bin Card: This document is prepared by the stores
department. It shows the quantity of specified materials available
in the bin at any point of time.
(vii) Stores Ledger: The stores ledger is a record which is
maintained by the accounts/costing department. It shows the
materials received, issued, balance, and value. This record keepstrack of movements of materials from and into stores department.
(viii) Material Requisition: This document is prepared by the
production or other departments depending upon the situation. It
shows the materials to be issued. When the production or other
departments are in need of materials, they raise a stores or material
requisition.
(ix) Material Return Note: This document is prepared by the
production or other departments depending upon the situation. This
shows the materials returned to the stores department.
(x) Material Transfer Note: This document is prepared by the
production department or other departments. It evidences materials
transferred to other departments.