Notes, Exercises, Videos, Tests and Things to Remember on Store Keeping
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Storekeeping is a specialized and important function of material control that is especially concerned with the materials and material related goods. The storekeeper is responsible for safeguarding and keeping the materials and supplies in proper places until required in production.
It is service function and the storekeeper is incharge of storekeeping. He is the warden of the goods stored in the store and maintains a record of all movements of materials. The storekeeper, in fact, is a connecting link between planning and the production department. Purchasing control must be matched by effective stores control to avoid losses from damage, deterioration and carelessness.
Store keeping includes the handling and recording of materials. Following are the main objective of storekeeping:
Although, there are various types of store, the following are the commonly used by manufacturing company. Basically, there are three types of stores as follows:
If there is only one store to receive and issue materials to all departments of concern, such store is called centralized stores. In this type of store, all materials are stored in one place called a central store. Materials are received by and issued from one store's department in centralized stores.
This type of store is used by most of the manufacturing company. The main objective of a centralized store is to purchase and issue all the materials required by all the department.
This store has emerged due to disadvantages of centralized stores. It is a just reverse system of centralized stores. Under this system of a store, in each department, there should be an independent or separate store. Each department has to make a separate store for recording the materials they required. It is not so popular because it required more installation cost and a separate store in each department.
Centralized Store with Sub-Stores:
In this store, the imprest system of stores is used where each sub-store is given some beginning stock. In a big organization, the central store is far from production department and due to which transportation cost increases. To reduce the cost of handling and transportation, a sub-store is maintained near production department and sub- stores are managed by central stores. Sub- store gets materials from the central store.
The place is known as location. So, a location of the store means the place where the store is situated. While selecting the location of the store, purchase department must be careful in various facts because the location of the store must be considered and the store should be divided into racks which should be future sub- divided into small spaces. This space is known as a bin.
Factors to be considered for Selecting Location of Stores
A storekeeper is a person appointed for taking care of the store. He is in charge of the store and responsible for the control of the store. Normally, all the big manufacturing concerns appoint a storekeeper. He has an important role in storekeeper. The storekeeper must have some technical knowledge and experience in store routine. Except this, he should be trained, honest, loyal and responsible. He is also called store manager or store superintendent.
A storekeeper should be responsible for the following functions:
After receiving materials by receiving or store keeping department, storekeeper has to perform various jobs relating to materials. It is known as storekeeping procedures or store routine.
Classification and codification of materials facilities prompt identification of the materials in storage when they are being sent to production departments. All items in the stores should properly be classified and codified. Goods and raw materials which are received by store must be scientifically classified and coded.
As per the nature of materials facilities in various groups of goods, materials are classified to make issuing, storing and identification materials easily and quickly. So, materials are first classified on the basis of their nature and types. It may be defined as construction, materials consumable store, spare parts, lubricating, etc.
After classification of materials in various groups, they are codified again. Coding means to give numbers or distinctive symbols to specific materials of stores with an arrangement for a prompt arrangement to facilitate storing. The symbol allotted to the materials known as ‘code’.
There are three methods of codification of materials:
After classification and costing of materials, the next step in store routine is recording of materials received by store department. Following are the two system of material recording received by store.
The bin is the term used to symbolize the place or shelf or rack or pigeon-hole or even a big room where materials are stored and the card attached to the bin or tag hung up there is known as Bin card. Bin card shows quantitative details of receipt, issue and balance of materials in the bin.
This card also shows the maximum level, minimum level and re-order level of the materials. It helps the storekeeper to control material. Bin card is used by the storekeeper to keep the only quantitative record for all the items of materials in store. Remember that, it does not record the value of materials.
Store ledger is maintained by costing department. This ledger shows the information for the pricing of materials issued and the money value at any time of each item of stores. Store ledger contains an account for every item of stores and makes a record of the receipts, issue and the balance, both in quantity and value. It contains the name, part number of the item and bin number.
Koirala, Madhav et.al., Principles of Accounting -XII, Buddha Prakashan, Kathmandu
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Bajracharya, Puskar, Principle of Accounting-XII, Asia Publication Pvt. Ltd., Kathmandu