Stores’ Systems and Procedures

Stores’ Systems and Procedures

To have effective control and proper accounting of materials, a professionally managed Stores has the following main functions:
¾ Receiving
¾ Custody
¾ Inventory Control
¾ Disposal
¾ Receiving

Materials Status at Receiving

Materials in the Receiving department are segregated into several categories, based on their quality control status and destination. Procedures in receiving must provide for storage and transport of material in each category. The major categories of materials are:
Awaiting inspection – This category consists of material that has been received and is awaiting inspection before being moved into stock.
Acceptance upon certification – This category consists of material that may be accepted pending certification.
Rework: In this category are materials that are defective and must be reworked.
Return – This category contains materials that are defective and will be returned to the supplier for credit or replacement.
Materials to be tested – This category consists of materials which have been received and are awaiting delivery to the using/testing department.


Open Purchase Order wise file, once P.O. is received. Maintain Railway Receipt Register, Consignment Note Register, Inspection Request Register, Rejection Register and other relevant documents viz. individual P.O. wise file, advance document file, shipping documents, Guarantee Certificate and inspection certificate, challan etc. and to feed the relevant data into the computer.

Receiving reports/documentation

Receiving keeps records of all deliveries, and notifies the involved parties, including accounts payable, purchasing, and the end users. If the operating systems for the business are computerized, then data for each receipt is entered into the system, and linkage to the purchase order and accounts payable files can occur automatically. Reports of receiving activity can be generated as needed. Manual documentation may also be kept. Normally, even in a computerized business, copies of the bills of lading and the packing slips are retained in the receiving files Receive/collect material, make cash payment towards freight and demurrage including transportation charges.

Unloading, checking of quantity (checking the shipment) :

The process for receipt of a shipment includes unloading the shipment from the delivery vehicle, verifying the shipment with the delivery, and signing the carrier’s bill of lading. Number discrepancy should be detected at this stage, where the quantity reflected on the bill of lading is not what is delivered. These should be detected and reconciled before the driver leaves. Once the bill of lading is signed, count errors are much more difficult to resolve.

Unpacking / opening of packages and inspecting:

The next step in the process is to check the open order file to verify that receipt is a legitimate one, and to verify the quantity due. Feed data like D.B., P.O, and challan etc. in computer and generate the goods received intimation/inspection certificate for sending it to the indentors / users
If a shipment is found to be incomplete, it should be so noted by recording the amount actually received. This action will reflect a partial receipt of the P.O. quantity, and leave the line item open for receipt of the balance. If there is no internal documentation for the material received, it is classified as pending or “in suspense” until its status is resolved.