Stock accounting is the
clerical process of recording the movement of materials in and out of the
stores. The basis of the stock accounting method is the stock record card (also
called bin card), which provides an up to date record of the stock of materials.
The stock record card is the main source of information on the availability
stock code, description, unit of specification, stock location, stock level
(i.e. minimum, maximum and re-order levels), source of supply, lead time for
procurement, sequential data-wise record of receipt and issue quantities,
balances at any point of time and other connected information as required. In
particular, the stock levels set on the stock record card regulate the inflow
and the outflow of materials, and sound a timely warning for commencing stock
replenishment. An effective stock accounting system can assist in controlling
materials stocks by ensuring that:
Typical Materials Stock
Control Bin Card
Code
No.
Bin No.
Description Stores
Ledger No.
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Date
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Receipts
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Issues
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Stock
Balance
Qty
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GRN No.
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Qty
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REQ No.
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Qty.
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Balance B/F
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A bin card shows level
of stock of an item in a bin at a particular store location.
1.
Materials of the right
quantity and quality are available in the stores at the right time.
2.
The stock levels are
kept as low as feasible so as minimize the investment or inventory holding
costs on the materials and to avoid occupying of excessive storage space
resulting in high overheads.
3.
Stock quantities can be
easily verified thus preventing pilfering, theft and wastage.
On the whole, the stock
record card if properly maintained, can serve as the main source of information
on materials to the materials department, planning department, costing
department and finance accounting department.
