Meaning Of Stock Records: What Is Stock Records, Procedures, Types, Advantages & Importance Of Stock Taking

Table Of Contents

  • What Is Store
  • Meaning Of Stock Records
  • Procedure For Stock Procurement
  • Types Of Stock Records
  • Advantages Of Stock Records
  • What Is Stock Taking?
  • Importance Of Stock Taking

What Is Store

Store can be defined as a place where items, goods or materials are kept for future use. It could be a small or large room or accomodation as large warehouse.

Meaning Of Stock Records

Stock records also called stock card is a record of movement of stock into or out of the store or warehouse. It also means the keeping of records to know ways in which stock are brought into and out of the company.

Procedure For Stock Procurement

The following documents and records are use for the procurement of stock in an organized company in this procedure.

Procurement Form>> Delivery Note>> Goods Received Books>> Stock Cards.

Types Of Stock Records

1. Procurement Form: Before ordering for goods, The department or office concerned must obtain and fill what is known as the procurement form.

After filling the form, it is sent to the office in charge usually the purchasing manager for signing and approval. If approved, the order then sent to the company that will supply the items, or on the othr hand it may be bought in the open market.

2. Delivery Note: This is a document that shows evidence of delivery of goods to the buyer.

3. Goods Received Book: This is also a document where the goods are first record before entry into the stock card.

4. Stock Card: This used for recording of movement in and out of stock. A card is provided for each item of stock. The card has three major columnm, that is: Stock In, Stock Out and Stock Balance.

5. Requisition Form: Can be defined as a form which a department or workers desiring to take a particular stock from the store of a company before he is permitted to take such stock away from the store.

Advantages Of Store Records

1. Store received make account ability and check easy.

2. Adequate store records prevents the missuse of materials by worker.

3. Store records enables the various department take material duties conveniently.

4. It enables the organization determine the rate of turnover of stock thereby making the company budget easy.

5. Stock records help to prevent over stocking of unecessary materials.

Stock Taking

What Is Stock Taking?

Stock taking also known as inventory is done by both trading and manufacturing firms at specific intervals.

Stock itself can be one of the following:

a. Finished goods ready for sale.
b. Partly finished goods.
c. Raw materials used by the firm for production.

Note: Importance Of Stock Taking

1. It enables the company to know damaged stock.

2. With the help of stock taking the company discovers missing stock.

3. Slow moving stock are discovered when stock is taken.

4. Management can therefore determine the honesty and reliability of the store keeper.

5. It enables the company to know the quantity and value of stock they have at the end of the year.