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 which shows the material code, description, specifications, quantity received for inspection, quantity accepted, quantity rejected, reasons for rejection etc.

(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 keeps track 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.