Office procedure II

Business Studies J.S.S 3 First Term

WEEK 4

Office procedure II

Performance Objectives

Students should be able to:

      1. Keep records of stock and stationary.   

Content

Meaning of store

A store is a place where goods are kept for future use. The goods here may be raw materials, spare parts, tools, semi-finished goods or finished goods

Store records

Store records are documents that help an organization to determine the number of goods available in the store. They also help the organization to know the materials that have been issued out or used and those that have not been used. The stock department is responsible for the safekeeping of the stock of either raw materials or finished goods.

Types of store records

A number of documents used in the stock department include:  

1. Stock requisition form: The form is used when collecting goods from the store. Any department within the organization, which requires any goods from the store, will normally complete the stock requisition form.

2. Stock card/Bin card: A stock card is prepared for each item of material. The stock card shows how the material is being issued out from the store and the quantity being put into stock. The stock card also shows the date on which an item was issued out, the requisition form number, the department which made the request and the balance in stock.

3. Purchase requisition form: Quite often, stock falls to a re-order level that is, a low level, at which stock must be replenished. At this level, the storekeeper informs the Purchasing Department of the need to replenish stock. This is done by completing a form called the purchase requisition.

4. Delivery note: A delivery note is normally sent alongside the goods. It states the types and quantity of goods delivered. It does not state the prices of the goods being delivered. The delivery note is used to check if the goods delivered are as ordered.

5. Gate pass: The gate pass is used to control the movement of goods and people in and out of the organization. It is basically used by the security department of an organization to ascertain the authorization of individuals to move out of the company`s goods and properties.

Importance of store records

The importance of store records are as follows:

1. Store records help to minimize fraud, prevent theft, loss or damage.

2. It helps to maintain systematic records of materials.

3. It monitors and shows accurately the time for the purchase of more items

4. Store records show the re-order level, the minimum stock and the maximum stock.

5. Stock records help in reconciling the recorded balance of stock with stock that is physically available in the store.

 

Store procurement

Store procurement involves stages in getting materials for the Store. It is the responsibility of the purchasing department. The storekeeper and the purchasing officer both play an important role in the procurement of materials needed by the organization.

Procedures for store procurement

The procedures for store procurement are as follows:

1. Purchase planning.

2. Standard determination.

3. Specification development.

4. Supplier research and development.

5. Value analysis.

6.Financing.

7. Price negotiation.

8. Purchase making.

9. Supply contract administration.

10. Inventory control and Store.

11. Disposal and related function.

Meaning of stock-taking

Stock-taking refers to the physical count of goods in the storeroom or warehouse so as to reconcile the physical stock balance and the book balance.

Importance of stock-taking

Stock-taking is important in the following ways:

i. It helps to prevent or uncover theft.

ii.  It improves the store ordering process.

iii. It is a parameter for a statutory requirement.

iv. Stocktaking highlights business performance.

v. It is a determinant of accurate profit margin.

vi. It helps to understand Product sales performance.

vii. It identifies stock levels and improves cash flow.

viii. It discovers other stock loss issues.