Codification is a process of assigning a unique code to an item for its easy and complete identification.
Code of an item is a unique set of numeric / alphanumeric values that describes the detailed nomenclature and specification, unit of measurement, location of storage and many other related information about an item.
It’s brief and acts as a communicating mode for the item for different people and agencies.
Cataloguing refers to assigning a distinct code ,writing complete and detailed specifications of an item and listing all such items existing in an inventory.
Classification and codification of items are a necessity
for efficient control of inventory. They not only facilitate proper accounting and identification of Stores but also contribute immensely in standardization and variety reduction.
Why Codification / Cataloguing is required?
Any inventory consists of a number of items obtained from different sources / suppliers. Each supplier identifies its material in his own unique way.
Thousands and thousands of such materials enter into the inventory record. These items, depending upon the requirement, may require replenishment and thus their details may be required by many departments. Also, since requirements my be of repetitive nature there is a need for assigning a distinct code within the organization for all these materials coming from different sources ,bearing different numbers.
One of the ills of inventory listing is creation of duplicate record of an identical item. Same item may enter into an inventory record in different names. It’s cataloguing and codification that eliminates such duplication chances and thus saving important money for the organization
How is codification / cataloguing done?
Any item that enters into a firm is codified provided it needs proper accounting for the present and the future.
For example , an item , a part of a machine that may be required in future also shall require a unique code and detailed catalogue as it may be referred to repeatedly in future.
Usually, all the items forming part of an inventory are catalogued and once prepared this catalogue is distributed among the different agencies such as indenting , planning, Finance, Purchasing and Stores departments.