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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.