Basic Store Keeping

 A store is a place where materials are stored for
future use.
 A store is an area where all kinds of materials
needed for production, distribution, maintenance,
packaging, tools, work in progress and so on and so
forth are kept or stored until they are required in
future time and they should be in good usable
condition at the time of need.
 Store is an area or place or room or house where
items are kept and safeguarded against such hazards
or calamities like theft, fire, rain, moisture etc.
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 Store keeping is an art or science which deals with the
process of storing goods and providing services. The
process includes:-record keeping, custodian of goods
in good usable conditions until they are required in
future.
 Stores management is an art or science of managing
stores functions in the storehouse/store.
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 Stores operations is a field that studies all mechanisms
to keep the store functioning well. It includes a broad
spectrum of activities, from people management to
the supply chain, store layout, cash operations,
physical inventory, master data management, offers
and pricing etc.
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 Raw Materials
 Work-in-progress (unfinished goods)
 Finished goods
 Spare parts
 Consumables
 Fragile.
 Capital items.
 Scrap and residuals
 Others such as; inflammables, flammables, hazardous,
explosive, corrosive, perishables, durables, etc.

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i. Inflammables
• Are the materials which catch fire easily
ii. Hazardous
• Are the materials dangerous/poisonous to human health.
iii. Explosives
• Are the materials which can erupt easily
iv. Corrosives
• Are the materials with high acidic ingredients & rust easily
v. Perishables
• Are the materials which decompose/spoil in short time e.g. food
staff,tomatotes,vegetables etc.
vi. Durables
• Are the materials which can stay longer [more than a year] e.g.
capital items etc.
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 The following are objectives of a store:-
i. To provide a balanced flow of materials, components, tool
to the operating functions.
ii. To make adequate provision of materials, storage systems
conditions and equipment in goods usable condition.
iii. To receive, issue and store scraps , work in progress,
finished goods and other materials.
iv. To preserve goods against defects while in storage.

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 Main Features of effective and good
storekeeping
i. Immediate location of stores (supplies)
ii. Facilitates quick receipts and issues of items in the
storeroom.
iii. Fully identification of all materials at all times.
iv. To keep correct and up to date records of receipts, issues
and stock balance of the materials in storeroom.

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v. To protect materials against damages, deterioration,
theft and pilferage.
vi. Protection of materials against fire problems and
theft.
vii. Maximum utilization of space for economic use of
storage space while providing maximum service
levels to customer and minimizing total storage cost.
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 What is a store function?
 Is the function deals with physical
keeping of materials and their

accounting to ensure that there is always
a constant availability of the goods in
their required conditions while keeping
cost at minimum.

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i. To make available a continuous flow of raw materials,
components tools, equipment and any other commodity
necessary to meet operational requirement.
ii. To provide maintenance materials, spare parts and
general stores as required.
iii. To receive and issue WIP and finished products
iv. To accept and store scrap and any other discarded
materials.
v. To account for all receipts, issues and goods in stock.

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i. Identification
 Identification is the process of systematically defining
and describing all items of stock. It includes the
preparation of stores codes or vocabulary, adoption of
material specification and the introduction of a degree
of standardization.
ii. Receiving
 Receiving is the process of accepting, from all sources, all
materials, equipment and parts used in the organization,
including supplies for manufacturing or operating processes,
plants maintenance, offices capital installations and finished
products.

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iii. Inspection
 Inspection means the examination of the incoming
consignments for quantity and quality. It is a duty of the stores
function to see that the inspection is done before items are
accepted into stock. The results of inspection have to be
communicated to purchasing department and the concerned
supplier.
iv. Issue and Dispatch
 This is the process of receiving demands, selecting the items
required and handling them over to users. It includes also
where necessary, the packaging of issues and the loading of
vehicles with goods .

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v. Stock Recording
 Is the process of recording from day to day full
particulars of individual receipts, issues and
balance of stock items. Stock recording
documents provide the kind of information
required to control and maintain levels of
stock established.
vi. Stores Accounting
 Stores accounting is the process of recording
stock movements and balances in value.

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vii. Stock Control
Stock control is an operation of continuously arranging flows
of materials so that stock balance are adequate to support the
current rate of consumption, with due regard to economy.
viii. Stocktaking, Stock Checking and Stock Audit
Stocktaking is the process of physical verification of the
quantities and condition of goods, usually on periodic basis for
the purpose of ensuring that an appropriate figure appears in
the organization’s accounts. Stock checking is similar to Stock
taking but it should be done on an ad hoc basis for
operational reasons. Stock audit involves an internal agency and
the purpose is verification.

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ix. Storing
Storage comprises the management of storehouses and stockyards,
the operation of handling and storage equipment, and the safe
custody and protection of stocks.

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x. Economy
The principal objective of store function is
to provide service to other departments for
smooth operation, however such service
should be provided with cost
consciousness to ensure minimum costs of
operation.

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 Who is a store keeper?
 Is a person in charge of storehouse and all items within it.
 Duties of a Store keeper
i. Oversee the receipt, storage, requisitioning and
disbursement of supplies and materials,
 To maintain store in a tidy manner.
 Supervision of store activities and personnel.
 Prevent entry to unauthorized people in the store.

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v. To ensure security and safety in store.
viii. To receive and store materials for use
ix. To keep all materials and goods held neatly
and ensure proper location and storehouse
cleanliness.

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x. To issue and dispatch materials against properly
authorized requisitions
xii. To check balance of stocks periodically and carry out
reconciliation between ledger and stock
xiii. To request store once the reorder level is reached
xiv. To carry out physical stock taking
xvi. To carry out stores accounting.
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 As a senior person and advisor to the management, Stores
Manager plays the following roles in relation to stores:-
i. Identifies items to be stocked in the store

ii. Establishes minimum/maximum quantity, ordering points
based on historical trends.

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iii. Notifies Purchasing officer/ Director of
low quantities.
iv. He/she checks stock items against claim
voucher (receiver report) for
correctness upon delivery to the
warehouse.

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iii. Optimum stores so that items are kept in
excellent conditions
iv. Install and monitor stores operations,
internal transportation and physical
distribution.
v. Decision making and advice management
on stock policies and control.
vi. Compile stores routine and operation
reports.
vii. Responsible for proper stores management
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1. Independent Unit/department
The store manager reports directly to GM, stores

have given equal status to other departments
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2. Integrated Unit/department
The store and purchasing integrate to form a

strong department called Procurement and
supplies/stores department that reports to GM
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3. Subordinated Unit
The store manager reports to Production manager.

Stores do function in favor of superior departments
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 Nature of Materials and Classifications
 Storage methods for various materials depends on its
nature.
 Therefore, for the purpose of storage and handling of
materials, items can be grouped into three broad

categories namely :-
a) liquids
b) granular and
c) solids.

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Nature of Materials and Classifications
a)Liquids
Items which are of liquid nature can be of
various types running from water,
medicines, alcohol etc. Generally, they
don’t create problems in storing and
handling because they are normally
packed in containers which can easily be
handled as solid items
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Nature of Materials and Classifications…..
b)Granular Products
•There are two common categories, the first
being sand and rock products and the second

is agricultural products. These items are likely
to be prone to hazards like water and water
vapour, dust, bacteria and fungi, and insects

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• Nature of Materials and Classifications…..
• Granular products, if packed in small containers like
bags and boxes, can easily be treated as solid items. In this
case the use of conveyor belts can help greatly in handling
of these items. In their storage, it must be noted that they
give out a lot of dust that can be dangerous to the health of
those working in such areas. Provision of dust stocking
equipment and proper ventilation in the storehouse can be
of great help.

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Nature of Materials and Classifications…..
c)Solids
•Materials that are solid in nature are probably of the
majority in many organizations. These range from small

sized items requiring the use of bins, bulky materials of
varying types and sizes, awkward items like timber, iron
bars etc, explosives and, perishables, textiles, spare parts,
stationary etc. Such items need different methods of
storage.

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 Storage of materials
 As we have seen three categories of
materials classified for the purpose of
storage and handling; granular, solid and
liquids. All these have different storage
methods according to their nature.
 The followings are various storage methods
for various goods;-

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 Storage methods
i. Shelving
• A shelf is a structure designed to keep items capable of
shelving; while Shelving is the system of stacking loads in
shelving structures similar to racking. Shelves may be
made of steel or timber but obviously the steel made
shelves are stronger in performance than timber made
shelves. Shelves may have affixed structure which means
that the structures are permanently fixed in partition so
changing them involves dismantling and making it up.
Shelves may be adjustable which means that the partitions
are easily adjustable to a desired dimension to
accommodate items of various sizes.
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Storage Methods cont….
a)Open type shelving
•In such a storage, services can be
rendered from both sides. Shelves of this

type may be used for man purpose but
they are most suitable for storing
packaged items e.g. small boxes of
components, screws, ball – bearings, tins
of paint, boxes of cleaning materials etc.
Sometimes such shelves are known as
double sided shelves.

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STORAGE METHODS cont….
b)Closed Type Shelving
•Under this storage, services can be rendered from one side
and the other side is completely closed i.e. it is a single

shelf. It is probably the most widely used form of storage
fixture, and it can accommodates a very extensive range
stocks. It is just as convenient for packaged goods as open
shelving (but is more expensive), and it is most suitable for
loose items such as nuts and bolts, hand tools, pipes fittings,
small components etc. For additional security or protection
from dirt or damage for valuable tools or instruments,
medical supplies, stationary, clothing etc lockable doors can
be provided.
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STORAGE METHODS….
ii.Block stacking
•Block stacking is the process of arranging goods in their
containers one on top of the other to form free standing
stacks. Materials with shape like bricks or blocks are
stacked directly upon each other.

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iii. Multi – tier Binning (Binning)
• When shelving has some smaller compartments that may
accommodate small items, bins are formed. Binning is the
system of stacking loads in bins or similar structures in
the same manner as for racking and shelving. In order to
make the best use of the available air space, two or more
tiers of bins are placed one on top of the other. This can
be arranged quite economically because, within limits,
the lower tier of the bins will support the upper tier.

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 STORAGE METHODS cont…
iv Racking is used to store big items
which can not be accommodated in
the bin. The items except for the bulky
and items such as tubes and bars
normally put in boxes or on pallets
before being stored in the racks.

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v. Palletizing. This is the system of
stacking palletized loads one on
top of another to allowable and
riskless height.

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STORAGE FACILITIES (EQUIMENTS)
The objective of this part is to discuss various facilities
storing materials in the storehouse

1.Racks
A rack is a generic name given to any kind of storage fixture
which cannot be classified as shelving or binning. They are

designed to carry items of excessive weight, irregular shapes
etc. They have similar characteristics like shelves.

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2) Pallets
• A pallet is a piece of equipment specifically designed
to facilitate mechanical handling by fork – lift trucks,
and may be used for both storage and transportation
purpose. There are two types of pallets namely: Flat
pallets and Box pallets

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 Storage facilities….
3)Shelves. These are structures made of steel
or timber designed to keep goods in a
storehouse. A shelf can be fixed which
means the structure are fixed in partitions
unlikely to be changed easily. Also a shelf
can be adjustable which means the
partitions are easily adjustable to desired
dimensions to accommodate loads of
various sizes. Also a shelf can be closed or
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4) Trays, tote pans or unit pans
 These are metal trays or unit containers made from steel
or plastic which are convenient to store loose component
such as nuts, bolts, small sized spares example spark
plugs, press buttons etc Items are randomly stored

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5) Bins. These are small chambers in shelves
or racks used to store items of small sizes
like nuts, bolts, nails etc.

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 Receiving is the process of accepting from all
sources, materials, equipment and parts used
in the organization, including supplies for
manufacturing or operation processes, plant
maintenance, capital installations and offices.
 Goods may be received from outside suppliers,
from production department or from other
stock holding units within the organization.
 Goods must be properly looked after when
they arrive. BASIC STORE KEEPING.Mbwafu, F.
•
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 Thereceipt of stock should follow a
standard and logical sequence of
events. Each stage of the stock
receipt cycle is very important and
must be carefully controlled and
supervised by the stores
management.

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 Sources of supply for store can be any of the
followings;-
a) Return from User Departments
b) Return from Customers
c) Other stock holding units
d) Receive from Production (e.g. Wip, Finished goods )
e) Receive from Suppliers (sample and purchases)
f) Receive of on-loan equipment

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 The receipt of stock should follow a standard and logical
sequence of events. Each stage of the stock receipt cycle
is very important and must be carefully controlled and
supervised by the stores management. The typical stages
of the receipt cycle are sent out below:
•
1. Notification of the order being placed by purchasing
office/department
This will inform stores department that goods have been
ordered and a provisional date and method of delivery
established, stores management can therefore make
provisional plans in relation to the stock receipt system.
A copy of a Purchase Order (LPO or PO) is sent to stores
dpt.
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2. Confirmation of Delivery
This will enable the storekeeper to make
definite arrangements for the delivery of a
specific amount of stock by confirming the
method of delivery.
3. Space allocation
Once the delivery has been confirmed, the step
must be taken to ensure that sufficient space is
allocated for the new delivery which may mean
stocks rearrangement. This is essential if double
•
handling is to be avoided.
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4. Labour allocation
The unloading of goods will require some degree of manual
handling. In some cases a large number of staff may be needed and
plans must therefore be made to ensure that when the delivery
takes place, labour will be available.
5. Materials handling facilities allocation
This must be planned to deal with the delivery. Certain types of
goods and packaging need specialized materials handling
equipment to unload and store them properly. Therefore, plans
must include this factor so that the necessary handling equipment
are available.
•

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6. Delivery of the goods
At this stage of the cycle, goods actually arrive
at the store. Most of the following steps are
necessary for completing delivery of goods.
i. Unloading of the goods or packages
ii. Checking all packages against shipper’s
manifest or consignment note.
iii. Observing and recording condition of
packages or other evidences prior to
acceptance.

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iv. Unpacking and checking all the goods to ascertain agreement
with supplier’s packing list and receiving copy of purchase
order.
v. Recording shortages, damage on the materials and incorrect
items.
vi. Arranging for detailed inspection and testing by certain
instruments and apparatus.
vii. Recording receipts identified to partial or complete on
receiving documents or materials received report.


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7. Storage of deliveries
Delivered items will have to be stored on the
shelves, bins, racks or whatever storage
equipment is available. It is necessary at this stage
that goods are placed in their correct location,
otherwise the whole issue and checking system
will be adversely affected.
8. Notification of delivery
All concerned sections or departments need to
be informed of the arrival of the goods or
shipment and its quantity, condition and receiving
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 It is essential to note the differences between receipt of
goods from a carrier and from the supplier:
(a) Delivery by Carrier
 The advice note is not always sent by a supplier but could
be enclosed with the goods or sent by post .

 Special rules exist to claim for damage, shortage, or
pilferage.
 Three parties are involved in the claim i.e. supplier, carrier
and buyer.
 The carrier is a customer of the supplier and has a vested
interest in trying to shed himself of the responsibility to the

recipient.
 A signature given on the delivery documents is for the
number of parcels. BASIC STORE KEEPING.Mbwafu, F.

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(b) Delivery by Supplier
The Supplier advice note or delivery note usually accompanies
the goods
In the event of shortage or damage, there is direct contact to
the supplier that makes settlement of claims easier.

The supplier is, as a rule, supplying to his own customer and
has a strong reason to ensure that the receipts is fully satisfied in

the event of difficulty. More co- operation are needed.
A claim can often be made by telephone call, and settlement is
very much quicker

A signature on the delivery documents involves the contents of
the parcel, sometime their quality as well as quantity

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 Is the process of examining incoming
consignment for quality and quantity.
The reason to take this test and
examination for bought item is to assure
the buying firm that the quality is
equivalent to the money spent.
 The test and examination may be done
through laboratory test or any other

tests using appropriate equipment
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 100% inspection:
An obvious means of ensuring that the quality of
inspected goods is up to standard is to inspect every
item of the incoming delivery. Indeed, in cases where
very highest levels of reliability are
essential, 100 percent inspection is regarded as
necessary. This method of inspection is very
costly.

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b) Sampling/sampled Inspection
This is the examination of the goods whereby only a
portion or part of the consignment is verified for quality

to represent the whole consignment. The results of
inspection carried on the sample are examined to
represent the batch. This method of inspection is less
costly, but the sampling plan must balance between the
cost of inspection and the costs of accepting defective
items.
c) Zero inspection. Not undertaking inspection at all

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a) Value of the goods
•For very valuable goods a thorough inspection (100%
inspection) is very important since a slight mistake results to

enormous losses.Example of the goods:- minerals, Capital
items etc.
b) Nature of the goods
•Some items are of such a nature that thorough inspection is
impracticable for example live animals.

c) Importance of the goods
•Items may be of low value but they are very important to
the operations of the organization, in which case a thorough

inspection(100% inspection) is recommended.
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d) Reliability of supplier
Where the supplier is a long time one and past records
show that he is competent in all quality aspects on his

deliveries, sample limited inspection may be done.
e) Cost of inspection
Where the cost of conducting inspection is higher than
the value of the goods then it is not advisable to carry out

100 percent inspection hence sample inspection is
recommended.

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f) Type of package
If packages are well secured, then
inspection may not be so necessary.

g) Nature of seals
Where items are standardized and their
seals are original sometimes it will be

costly to carry inspection on them e.g.
canned products.
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1. Receiving Storekeeper: Storekeeper to inspect
incoming materials since have knowledge of the
materials.
2. Inspection department: inspection to be done with
a separate department dealing with inspection
3. Technical staff: inspection of a certain materials,
chemicals or equipment require technical skills to
be inspected by technician.
4. Inspection at Supplier’s premise/source: the
inspection done at suppliers’ premises

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• Rejection may be defined as refusing to accept an
order of materials due to failure of such materials to
conform to requirements for which they are produced.
Where items are rejected; the inspection department
representative either signs the appropriate space on
the goods received note as rejected, or alternatively
indicates the reason for rejection on the inspection
certificate or prepares a separate rejection report. The
reasons for rejection may be low quality, damaged or
even wrong supplies.

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 This is a report prepared by an inspection agent either
the receiving section or an independent inspection
section or even the user of the items, explaining the
test conducted during inspection and the condition in
which the goods were found. This is done so as to act
as a basis for any claim that may be lodged and rectify
the quality of received goods.

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 Stock receipt involves all materials supplied to the
store, whether from internal transfers or from external
sources i.e. suppliers. Both must be strictly controlled
to ensure efficient stores management and smooth
operations. A comprehensive set of documents has
been developed to enable this control to be
maintained. The main documents are described
hereunder:-

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a) Reorder notification (Purchase Requisition Note
(PRN)
• This is produced by the stock control section and is
sent to purchasing, who in turn, will place an order
with the appropriate supplier, after going through the
purchasing cycle. A store is therefore aware that a
delivery of stock will eventually come about, although
it may be sometime before the goods actually arrive at
the stores.

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Purchase Requisition Note LOCAL/IMPORTED
SERIAL NO.
FROM……..
DATE………

Serial No DESCRIPTION UNIT QTY PERRIOD STOCK PURCHASE DEPT

DEMANDED TO USE
COVER
Quotation
Collected on……..

From
(i)……………..
(ii)…………….
(iii)…………...

Selected M/s……..

Approved
PURCHASE HEAD
Dated
Sign

Justification follow up: Received on………..
(1) For regular items-average monthly use……………………… D/N No.

(2) For non-regular items-actual use…………………………….. Invoice No.
Department Head Signature……………………………………… A (MNMA) Sign………..
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b) Copy of the purchase order( LPO/FPO)
 When an order has been placed with the supplier, the
storekeeper must be informed what he is expected to
receive and when it is likely to arrive. This is usually
done by sending him a copy of the purchase order.
When the goods are inspected, the inspection team
compares the detailed specifications on the purchase
order, with the received goods.

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PURCHASE ORDER
To M/s :………………………………………………. Order No……………………..
………………………………………………. Date:………………………....

We order herewith the following goods according to the condition mentioned in the profoma invoive
and in this order.
S/No Description Unit Quantity Rate Value

Conditions and terms:

-Delivery:………………………………………………………………………………………………
-Payment:………………………………………………………………………………………………
-Packing:……………………………………………………………………………………………….
-Others see over-leaf.

Purchase Dept Finance Dept General Manager

……………………… ………………………. …………………………


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c) Supplier’s advice note:
 When the supplier has goods ready for delivery, he
normally prepares an advice note to be sent through the
post to the customer or by the delivery driver when making
delivery. This note is required to be in the hands of the
receiving storekeeper before the goods themselves arrive
or while goods are delivered. This document performs the
same functions as the stores advice note which is used by
the storekeeper during transfer of goods from one
storehouse to another. Supplier’s advice note is designed
to provide the following information;-

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Information contained in Supplier’s advice note
CONT…..
•Confirmation that the order will be delivered
•A provisional delivery date and time
•Mode of transport employed by the supplier
(e.g. Railway, Road, air, Water or Pipeline)
•The date of dispatch
•Description of the goods
•Quantity of goods that will be supplied
Note: Supplier’s advise note is used while goods
are delivered by Carrier
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Supplier’s advice Note Date…………………
S/No………………...

To. M/s…………………………………………………………………………………
…………………………………………………………………………………

Ref:…………………………………………………………………………………………………

The following goods have advised to you vide…………………………………………………..
………………………………………………….. ………………………vessel and is expected to
Arrive on………………………………………………………………………….at …………....

Kindly arrange to collect them with all necessary documents.

Invoice/Bill of Lading No.: Marks & Nos. Description of the goods

________________________ ___________________ _____________________

Yours faithfully
________________________________
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d) Delivery notes
When the supplier delivers the goods himself, delivery
note is usually used. It states what the supplier has

actually delivered to the stores. However, it must be
carefully checked against the stock unloaded, to ensure
that the figures and detail on the delivery note are
accurate. It is the responsibility of the stores officer to
check the delivery notes and sign them as correct or not
as the case may be. It contains information on quantity,
type, colour, code and other details.

A (MNMA) 05/12/23 85

DELIVERY NOTE
S/No………….

Date…………

From M/s…………………
…………………

To. M/s…………………...
……………………...

Please receive the undermentioned goods in good order and conditions on a/c
of……..............

Quantity Description

Lorry No……………………
Received in good order and condition……………….
A (MNMA) 05/12/23 86
e) Carrier’s consignment note:
This is used when the supplier has contracted the actual
physical delivery of stock to an organization in business
for that purpose such as railway or a road haulage
company. Such organizations provide their own form and
delivery note so that control of what is delivered can be
maintained and claims for non-delivery notes of that
control of the goods, the number of packages and their
identification marks, if any, the weight, details of delivery
vehicles e.g. registration number etc. the name and
address of the carrier. In most cases the goods delivered
will have both supplier’s delivery note and a carrier’s
consignment note.
A (MNMA) 05/12/23 87

Consignment Note
From:……………………….. Date:…………………………
…………………………… S/No………………………….

To. M/s: ……………………………
….…………………………

Please receive the following goods dispatched to you as under:-
Contents: ……………………………………………………………………………………
…………………………………………………………………………………..
…………………………………………………………………………………..
E.g one case containing six drums ……………………………………………….

Delivered by: Received by:
………………………………………… ………………
Date:…………………………………… Date………….

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f) Supplier packing notes or list:
•Where materials are supplied are crated or otherwise
packed, it is usual for the supplier to send a packing note

which is either included in or securely fixed to the
packages. The packing note lists what is actually within
each package delivered. It should give specific data
about quantities, types, sizes, colours, specifications etc.

A (MNMA) 05/12/23 89

PACKING LIST (Specification) S/No………
Date:………..
M/s: ……………………………
….………………………..
Material packing specifications
Pallet No. Quantity Dimensions Gross Weight Net Weight

Signature and Stamp

All claims must be made within 5 days after receipt of the goods

A (MNMA) 05/12/23 90
g) Goods received note (GRN):
•This document is used to record all particulars of
accepted stock such as quantity, the supplier of the

goods, details of delivery vehicle, driver etc.

A (MNMA) 05/12/23 91

GOODS RECEIVED NOTE (GRN)
NO…………………DATE……………………

Transport Mode: Type of Pkgs... Order No… No. of Pkgs...

S/N Description Code No. Qty Received Price Value

The above mentioned goods have been received undamaged and in accordance with terms.
Signature/ Inspector……………………………………………..
Part of damaged. Damage/Shortage report No…………………Sign……………..
Date……………………………………..
The stock has been posted………………………..Signature
Received…………………………


A (MNMA) 05/12/23 92
h) Log book: It records arrival of the goods
in an organisation. The book assist in
immediate recording of the receipts or
goods delivered especially where there
are large number of small deliveries or
major consignment.

A (MNMA) 05/12/23 93
h) Log book: It records arrival of the goods
in an organisation. The book assist in
immediate recording of the receipts or
goods delivered especially where there
are large number of small deliveries or
major consignment.

A (MNMA) 05/12/23 94
i) Damage /Shortage report
This document used to record goods arriving with or
during inspection, damages/shortages have been
found. This document is prepared where:-
 Goods delivered damaged or found in damaged state
at the time of receiving
 Goods shows shortage in comparison to suppliers’
advice note, delivery note or consignment note.

A (MNMA) 05/12/23 95
Damage/ Shortage Report S/N………………

To Carrier………….. To Consignee………Order No…………
With reference to M/s……………………………advice Note…………Date………… advising

Dispatch of the goods below per…………………...on……………
Goods have not yet arrived
Goods arrived but shortage as below.
Goods arrived but quantities shown below were damaged
Code Description Quantities advised Discrepancy

Signature: Storekeeper:……………………
Date……………….

A (MNMA) 05/12/23 96
j) Invoice(Tax invoice). Is a document
prepared by the supplier of the goods
when goods are procured on credit
terms. This bill (invoice) is for the total
value of the goods dispatched against
an appropriate delivery note.

A (MNMA) 05/12/23 97

INVOICE

S/NO. ……………………………
Date:……………………

M/s……………………
……………………

DR to…………………….
…………………….

Quantity Particulars @ Amount

Shs Cts

E. & O.E TOTAL

A (MNMA) 05/12/23 98
 Sorting of the complied item with specified quality will
be accepted to custodial of the storekeeper after being
handled to storekeeper.
 Marshalling receipts: marshaling is the process of
segregating items awaiting inspection, binning or
racking or dispatching. Before items are put in their
respective racks, bins or shelves after receipt, they are
temporarily stored in special place called Marshalling
area

05/12/23 (MNMA) 99
 Issuing. is the process of removing
goods/materials, from their locations,
storage space etc. This issuance must be
recorded in appropriate document such as
bin cards, stores ledgers, stores issue
note/voucher etc. For the process of issuing
to be complete, there must be exchange of
duly authorized document called Issue
note/voucher.
A (MNMA) 05/12/23 10
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 Issuing process. Since stock represent money,
should never be improperly used. Store keeper
must ensure that clear and valid issue
note/requisition is presented to the store as a
documentary evidence for issue before the
desired goods are issued.
 Store keeper must ensure that prior to issuing of
the goods authorized signatures are affixed in
which case a store may maintain some specimen
signatures if necessary of responsible and
authorized officers with the limits of such
signatories to authorize an issue.
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 Issue Note/Voucher. Is a document
authorizing withdrawal of goods/materials
from stores house.
 Note: Any issue is not complete unless it is
supported by an evidence of issue

note/voucher.

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•Distribution of Store issue note
Copy 1: Sent to stores accounts. This copy
is necessary to this section to record the
quantities issued and value of it for costing
purposes.
Copy 2: Remain to store. Give evidence of
the issues made as well as authority for the
issue.
 Copy 3: Stock control. Is important for
adjusting the stock records so as to control
stock BASIC STORE KEEPING.Mbwafu, F.
A (MNMA) 05/12/23 10
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Copy 4: Sent to users. A copy is sometimes
given to the users or occasionally a copy
remaining to users as evidence of the
quantity of the goods received.
 It is believed that goods should be issued
conveniently at minimum delays and costs.

 The following are the factors hindering
convenient issuing of the goods/materials

i. Priority. There is a tendency of giving

A (MNMA) 05/12/23 10
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favours to some few customers at the stores
counter such that the few unfavoured
customers stay long hours at the counter un-
attended.
ii.Financial limitations. Companies might have
no fund to buy equipment to assist in issuing
process.
iii.Accounting regulations. Accounting
regulations require complete documentation
before issuing, this delay speed of issuing
goods. BASIC STORE KEEPING.Mbwafu, F.
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5
iv. Clear validation of issue.Clear and valid
issue note is required before goods are
issued, more time is taken to prepare and
authorize it.
• Sources of Material Issue note
a) Work-site. Materials might be required if
construction works are on.
b) Local store. Transfers from one store to
another in the same organisation needs
issue note. BASIC STORE KEEPING.Mbwafu, F.
A (MNMA) 05/12/23 10
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c) Workshop. If goods have to be issued to
the workshop, issue note is essential and
workshop will be the source of issue note.
d) Sales. A store may be a place for storing
items for direct sale so that the issue notes
originate from the store.
e) Production. Always materials for
production are stored in the store-house,
when issue are necessary, issue note must
be produced. BASIC STORE KEEPING.Mbwafu, F.
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7
f) Loans, scraps. This also become the
source of issue notes especially when
loan items are being returned,scraps are
being removed from stores records.
 Order picking. Is the process of selecting
items from the storage area in the store
house.

A (MNMA) 05/12/23 10
8
• Fundamental principles for faster order
picking.
i. Fast moving items must be kept in easy
reach for order picker.
ii. Reduce unnecessary movement by installing
conveyors wherever possible.
iii.Discourage picking a single item at a time.
iv.Time should be set for order picking, unless
there is emergency.
A (MNMA) 05/12/23 10
9
• Posting of Issues
• Two techniques are used in posting of issues.
a) Pre-posting. Posting of items in the stores ledger, bin

cards, stock control cards etc. before actual issuance
of the goods is done.
b) Post-posting. Is the posting of the items in the books
mentioned above after a physical movement and
issuance of the goods are done.
Task. Find advantages and disadvantages of each
posting technique

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 Methods of issuing goods
1)Issue on request. Issue are done after
request are made.
2)Imprest issue. In this system materials are
held at sub store in approved quantities
and once they are used a summary is
submitted to the main store for accounting
and replacement so as to maintain the
stock up to the same level as before issue
was made.
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 Methods of issuing goods……
3)Replacement issue. In this system return of
the old unusable part or item is compulsory
for exchange to a new item before the
issue is made.
4)Issue on repayment. Employee salary is
deducted in comparison to the value of the
purchase the firm made for an employee.

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5)Loan Issues. An item is loaned for usage,
thereafter returned to store.E.g tools,
expensive equipment such as mortar
graders, excavator etc.
6)Allocated issues. Goods are purchased and
issued for a specific purpose. No way it can
be used for other purposes than what it
was bought.
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7) Capital issues. Materials are issued for capital
development and they relate to the particular project.
Material could bear project code number.
8) Free issues. These issues are made to contractor in
respect of a certain job being undertaken on behalf of
contractee. When some products are completed, then the
remaining materials are returned to contractee in such a
way that a contractee establish a balance of free issue
materials still attached to the contractor.

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 ISSUE PROCEDURE
 There is definite series of events that occur between the
original need for particular item of stock and its final issue,
as follows:-
i. Need. The user decide what she/he wants.
ii. Compilation of issue note. The issue document has to be
properly completed, giving fullest possible details of the
goods required.
iii. Checking and Authorizing Requisition. Goods to be
withdrawn from the storehouse, there must be authority for
transaction

05/12/23 (MNMA) 11
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iv. Presentation to stores. Once the issue note has been
checked and authorized will be presented to the
store for delivery. The store will check all data
contained and verify the reliability of the
authorization given
v. Identification. Stores will identify the items by code
number or reference by which the item has been
classified. This is achieved by using details contained
in the issue note
vi. Selection. Once the item has been identified, it can
be selected from the store.

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6
vii.Issue of the stock required. Once items have been
selected,delivery or collection can take place.
viii.Cost allocation.Every item used in running of the
operation has to be costed against a department
budget to ensure that the costing dpt will be able to
allocate the material costs to each of the operation of
the firm.
ix.Notification to Stock Records and Stock Control.
Once materials have been issued, both stock record
and stock control are advised in writing

05/12/23 (MNMA) 11
7
 Dispatch.Is the process of sending to outside
customer, branch or work Centre goods already
issued. Goods to be dispatched might be finished
goods, Items of repair, Returns, transfers, items to be
inspected.
 The process involves packing, preservation,
identification of packages, labeling, choice of the
appropriate transport mode etc.
 Packing is the art or process of putting together
selected items in packages such as containers, boxes
etc., ready for storage or transportation.
 Preservation means protection of goods from
hazards . BASIC STORE KEEPING.Mbwafu, F.
A (MNMA) 05/12/23 11
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 Such hazards includes:-
a) Climatic hazards - Caused by change of weather.
b) Biological hazards -Occurring due to bacterial reaction,
rats.
c) Chemical hazards - Happening as a results of diffusion
etc.
d) Physical hazards – Occurring because of vibrations,
pressure, etc., during transportation

A (MNMA) 05/12/23 11
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 Procedure for dispatch of stock
 Dispatching goods follow the following sequence:-
i. The original demand always comes from the sources

e.g.,customers,Inspectors, Others department, other
stock holding units
ii. Preparation of respective dispatch documents
iii. The document will be distributed by the dispatch dpt to
the sections involved eg Stores,sales,customers or
suppliers.

05/12/23 (MNMA) 12
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 Procedure for dispatch of stock
 Dispatching goods follow the following
sequence
iv.Transportation of goods to their final
destination.
v. Checking and loading of stock by loading
bay staff.
vi.Return of documentation and analysis

05/12/23 (MNMA) 12
1
 Important documents for issue and
dispatch.
1) Issue Note/Voucher. Is a document
used to authorize withdrawal of
goods, materials, parts,components
etc.

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ISSUE NOTE
S/NO:………………………….DATE………………………….
For use at ………………………………….. Job No……………………………………… Cost Center No ……………………………………..
S/N DISCRIPTION UNIT QTY REQUIRED QTY SUPPLIED CODE PRICE VALUE

Authorized by Issue by Checked by Received by

…………………….. ………………………… …………………….. ………………………..
FOR STOCK CONTROL USE

………………………………………
…………………………………… ..

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2) Transfer Note. Is a document used
when goods are transferred from
either one storehouse to another
storehouse or branch or department
and vice versa.

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3) Return Note.This is a document used to
return goods to supplier where such goods
are excess , have been found defective ,are
rejected etc. It is the same as transfer note
4) Dispatch Note. This document used to
record the details of goods being
dispatched to a distant customer.

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DISPATCH NOTE S/N:……………………………
Date……………………
M/s:………………………..
…………………………..
Please ackowlegde receipt of below goods as per your order /request etc
Ref No………………………………….
Mode of transport……………………………………………
Description Unit Quantity Price Value

………………………. ………………. ……………………… ……………………… …………………………
Dispatched by Driver Helper Dept Mgr Customer

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5)Packing list. Is a document used to record a
detailed description of the goods to be sent to
the customer. It is very useful document
during dispatching and users find it more
useful to receive the goods sent using
information on the packing list
6)Delivery Note. This is a document where
goods supplied and delivered are recorded

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 Stock records are regarded to be the best
means of controlling stock item by showing the
stock position,movement,locations etc.
 Points to consider in maintaining records:-
i. The cost of item to be kept in the record
ii. Cost of goods should outweigh the cost of
recording
iii. The worth of the information to the
organisation.
iv. Significance of maintaining records eg.For
auditing purpose.
v. Efficiency of record keeping.
A (MNMA) 05/12/23 12
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 Importance of keeping stock records:-
i. Assist to know the quantity of materials without
undertaking physical count.
ii. Assist in physical stock taking (Compare records
and physical balance).
iii.The stock record price used as a base for
computing the value of issues and stock balance.
iv.Assist in stock audit
v. Assist in stock control when determining when
to order.
vi.Assist to know stock location.
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 Types of stock record
1. Bin card. This is a simple card giving
description of the items, unit of issue,
vocabulary number, quantity issued,
received and balance. This card is normally
kept with physical stocks in their locations.

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TANZANIA INSITUTE OF ACCOUNTANCY (TIA)
BIN CARD
Item………………………………………….. Code No:.
………………………………………………..
Unit…………………………………………. Location:
……………………………………..
Date Ref. In Out Balance


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2. Stores ledger.This is similar to bin card, the
difference is it contain price and value column
(Refer fig 24,pg 63 of stores management
manual written by Clemence Tesha)
3. Stock review card.This document contains all
information found in bin card and stores
ledger but it also contains provisioning
information e.g (i)the review dates(the dates
when the cards have been revised on the
consumption rates, period the balance is
expected to cover and establish re-order
quantity)(ii)stock levels etc (Ref fig 25,pg 64).
A (MNMA) 05/12/23 13
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4) Loose cards. These are cards made of paper and kept in
boxes where sorting is done to pick the needed card and
information are recorded and then returned to the box.
5) Loose leaf books.These are in the form of booklet bound
together similar to cheque book. Because of binding
together it provides more security to records and very
easy to post entries in loose leaf books as compared to
the loose card. As a result of this arrangement the loose
lead books have been found to very useful in the storage
of stores information in a permanent way

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6) Daily stock position. This is a document
designed for control of the movement
of stock. It shows the daily balance of
current stock in such a manner that
management may make use of the
information for control.

A (MNMA) 05/12/23 13
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Daily stock position Date………….

Code Description Unit Stock Present stock Remarks
level


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7) Monthly stock statement. This is a record
designed to control movement of stocks
on monthly basis. It shows the summary of
all receipts, issues in a month together
with both opening and closing stocks.The
closing stock may be used to verify the
physical quantity for control purposes

A (MNMA) 05/12/23 13
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MONTHLY STOCK STATEMENT
Financial code No…….. Month………………..

S/N Material Code Description Unit Balance last Receipt Issue Balance this Goods on
month month order

Prepared by: Checked by: Approved by:

Supplies Assistant Store keeper Supplies Officer
…………………. ………………….. ………………………

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8) Certificate of hand- over of stores.
 This is a certificate/form used specifically when
there is a change of Storekeeper in the
supervision of the storeshouse for various
reasons such as duties retires, transferred,re
signed etc, therefore incoming Storekeeper takes
over the duties of the outgoing Storekeeper.
 During handing over of a storehouse, physical
stock taking/count has to be made in presence of
the two officers and the results being recorded
and signed by both officers (Incoming and
Outgoing
A (MNMA) 05/12/23 13
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 When to use hand over certificate:-
i. Store keeper is retiring on his own accord
ii. Store keeper goes on a long leave especially
sick leave
iii.Store keeper is retired on nation’s interest or
company interest
iv.A store keeper is terminated
v. Employment of new store keeper to take
charge of the stores
vi.Transfer of the store keeper to other section
vii.Death of the store keeper responsible for
stores, where the firm has to appoint someone
else to take charge
A (MNMA) 05/12/23 13
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CERTIFICATE OF HANDING OVER STORES

Division……………………………… Station……………..……………………………….
Date…………….…..…………………………….
I…………………………………………………. ……….……….hereby certify that I have on this day handed
Over to…………………………………………………….…….………………………all stores hitherto under
my charge as detailed in the attached schedules.
Signature of outgoing Officer……
Date.
I ………………………hereby certify that I have on this day taken over from…………………….………….all
Stores as detailed in the attached schedules. I have compared physical stocks against the ledger balances
and found to be
1)Correct and up to date
2)Correct with exception of items shown in the attached schedules of discrepancies.

I also hold my self peculiarly responsible for any subsequent discrepancies.

Signature of the Incoming officer…………………………………………………………..
Date…………………………………………………………...
Copy to: Head of Institution
Head of Supplies
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 Stock recording system
 The are TWO commonly used recording
system by organisations namely:-

a. Manual recording system and
b.Computerized recording system
a. Manual recording system

 This is a system where stores recording
and posting are done by hand.
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 Advantages of manual recording system
i. Posting are done without difficulty
ii. The system is cheap
iii.Writing of the record is very flexible( It does not
require special designed card or equipment to
record the transaction.
 Disadvantages of manual recording system
i. The system is unsuitable for large range of stocks
ii. Very tedious work in calculations for stock levels
such as ROL, MaxSL, and MinSL
iii.Inaccuracy in recording is inevitable

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b. Computerized recording system
 This is the recording where there is an
application of a computer as a recording
device
 Advantage of the system
i. High accuracy in posting/recording
ii. High speed in posting/recording
iii. Low clerical costs etc

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 Disadvantages of computerized recording
system
i. High costs of initial purchase of computers
and some of the device
ii. High costs of special design and expensive
cards needed for the system

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 Factors to be considered in the choice of the stock
recording system
i. Volume of work. If the volume of work to be recorded
is too big, computerized system is suitable and vice
versa.
ii. Analyze which system is advantageous to the firm
iii. Establish the extent and nature of accuracy
information required. Where the information is
urgently required and should be very accurate,
computerized system is better than manual
iv. Compare the costs involved between two system and
value of the information to the organisation
v. Flexibility of the system in recording in basic
documents. Manual system is more flexible in
recording than computerized because it can be posted
in any document
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Definition.
Stores accounting is a process of
maintaining records to show the
movement of materials with their
respective values thus be able to control
stock consumption and purchases by
means of value.

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 Stores account indicate value of stock to enable the
control of stock by value.
 It enable management make rational decisions on
stocked investment and formulate stock policies.

 It act as a basic for materials costing which indicated
how the cost of a particular item has been calculated.

 It act as a price list, where valuation of stock can be
done at any time.

A (MNMA) 05/12/23 14
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 Meaning of stores identification
 Type of materials especially in production oriented
organisation (e.g. raw materials, bought parts, finished
goods, work in progress etc).
 Identification process:- Classification, specification and
codifications;
 Principles of coding, Merits and demerits of codifications,
importance of specifications

A (MNMA) 05/12/23 14
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 Meaning of stores identification
 Identification is the process of
systematically defining and describing in
details all items stocked in the store so that
it can be easy to differentiate the item from
others.
 The major objective is to pin point and
distinguish each stock item from the rest of

items with the highest degree of accuracy
possible. BASIC STORE KEEPING.Mbwafu, F. A
05/12/23 (MNMA) 14
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 The process of material identification involves
the key elements such as specification,
classification and codification.
 Specification:This is the process of describing
an object or material in adequate details to

include measurements or any other relevant
characteristics for the purpose of describing.
This process assists very much the process of
material identification, without which the
identification process becomes very difficult.
05/12/23 (MNMA) 15
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 Specification could be either by technical expression,
commercial standard, blue prints, trademarks, brand
names etc.
 During the process of specification, over-specification
should be avoided by quoting only what is necessary
e.g performance, chemical.
 Specification plays a very important role not only to
identification but also to other functions of materials
management

A (MNMA) 05/12/23 15
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• Importance of specification
i. Correct and right materials are obtained
easily.
ii. Undertaking inspection will be made
possible.
iii.It may be used as data base for future
references and quotations
iv.Normally it assist in variety reduction,
standardization and simplification
process.
A (MNMA) 05/12/23 15
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 Classification.This is the process of
arranging the already specified items
into groups or categories according
to classes of behavior,
characteristics, shape, size, etc.
Similar items or those performing
the same function ,therefore
grouped together.
A (MNMA) 05/12/23 15
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i. Raw Materials: These are inputs to the operation or
production before becoming part of the finished
goods
ii. Work in progress: incomplete items in the process of
the product left after the shift of operation.
iii. Purchased parts: components for assemblies to
finished

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iv. Finished Goods: Are stock which are
held at the factory, awaiting shipment
or distribution ready for marketing or
selling and consumption.

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 Codification. This is the process of
assigning individual items code names or
code numbers. The idea behind this
process is to facilitate in pinpoint a
specific identified items. Application of
coding symbols instead of items natural
names or long descriptive references and
confusing titles is facilitated.
 Codification is the last of the three key
elements assisting identification process

6
1. Exclusive: Each item should have only
one code and this code should not be
used for any other item. Or each code
number should identify only one type of
item.
2. Certainty: Code numbers used for
different types of materials should be
certain and there should be no
possibility of confusion to avoid
ambiguity.
05/12/23 (MNMA) 15
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3. Every item should be covered by the
coding system developed
4. Elasticity: Code number should be
arranged in a such a way that it must be
possible to include new items i.e. should
leave room for likely future expansion
5. Coding system should conform with
organization’s need

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6. Brevity: Codes should be a brief as
possible. i.e. description given should be
brief, accurate and supported with
specification where possible
7. Uniformity: Codes should be of equal
length and of the same structure.
8. Unit of issue for each code should be
given
9. The codes should be able to aid the
memory of their users
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 To facilitate coding process to take place, there must
be some names, numbers or abbreviation being used,
these are called coding symbols. Most materials in the
store are codified according to certain class or base as
usage, location, colour, characteristics etc.
 However the following coding symbols are used:

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• Coding symbols
a. Alphabetical: This is the process of constructing code
names using ordinary alphabet letters, such as A, B, C…
Z. So item will be represented by any one or more
alphabets to identify it instead of items real name.
b. Numerical: This is the process f constructing code
names using numbers such as 0,1,2…..9 to identify it
instead of the item’s real name.

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 Coding Symbols
c. Alpha-Numerical: this is the process of constructing code
names using a combination of numbers and letters such
as to identify a particular item A4, T234 AAB, B2, 3C
d. Mnemonic:This is the process of constructing a code
names using abbreviation used stands for the short form
of the items identified e.g. RT to mean Round Table,
WT=wooden Table, MS=Mild Steel etc.

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 Coding process and Methods.
 After stock items are identified
categorically, they need to be given
names relating to a particular group. This
will eliminate confusion and duplication.
 Each group of a particular material is
subdivided and further analyzed until

individual item is pin pointed and
distinguished from the rest.
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 Coding Methods.
 There are several methods to coding
items according to group,characteristics,

colour, usage etc. The most common
ones are:-
1. Coding by nature. This is where items
are given code names according to their
own inherent characteristics. An
individual item is identified from its
origin.
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• Illustration
• In any organisation there could be grouping of goods
as follows.
0. Raw materials
1. Work in progress
2. General store
3. Finished goods
 Taking for example general store (2) different types of
items could be found as

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2.0 Stationeries
2.1 Paints
2.2 Hardware
2.3 Lubricants
Stationeries is too general and could also be analyzed as
2.00 Pens
2.01 Papers
2.02 Staple pins

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 Looking deeper on paper the following can be
distinguished.
 2010 Duplicating papers
 2011 Typing papers
 2012 Drawing papers
 For example 2010 will be identified as follows:-
2 General store
0 stationery
1 paper
0 Duplicating

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2. Coding by end use.
This is the process of codifying items to the final end
function of the item i.e what will be employed
finally. This system is suitable especially where
there are production and materials are arranged
according to the sequence of the production.
2. Coding by colour
This is the process of identifying materials according
to certain colours which could be marked on the
face side, making easier to identify it even at
distant location. Eg Red could be for iron, yellow
for aluminum etc.
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4. Coding by store location system.
 During layout of the store, it is subdivided into
sections or bays, shelves and bins which eventually
becomes a base for identification. So item located in
bin 1 shelve 3 and 2 bay could be identified as 2 3 1.
5. Customer references.
 Sometimes the part numbers of manufacturer forms a
means of coding. This is especially for spare parts .
Where products are manufactured for a particular
customer, the job order number or customer
reference number may be used also to identify items
or may identify the whole batch being produced for
that particular customer.
9
i. It identifies items and describes it accurately
ii. Code names are short form and they avoid long
descriptions, hence simplicity in identifications
iii. It is unique in a sense that it avoids duplications, as
there will be only one place for each item. No single
code number will be shared by two or more items or
single items having two or more identification
numbers.
iv. Code names facilitate and assist in standardization
and variety reduction

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i. Time consuming
ii. Takes long time to understand
iii. Hard tasks to code if you have many classes of items.

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 Definition
 Receiving is the process of accepting, from all sources,
materials, equipment and parts used in the

organization, including supplies for manufacturing or
operation processes, plant maintenance, capital
installations and offices.

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 TYPES OF RECEIPT
 Sources of supply for store can be any of the
followings;
 Return from User Departments
 Return from Customers
 Receive from Production
 Receive from Suppliers (sample and purchases)

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 The procedure for receiving is initiated by the receipt
of supplier’s advice note which is used for comparison
of the consignment delivered. This advice note
becomes very important when is received prior to the
actual delivery.
 Checking the shipment against manifest and in this
case is suppliers' advice note; consignment note and

delivery note are very important documents for
verification

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STOCK RECEIPT CYCLE/RECEIVING CYCLE
 The receipt of stock should follow a standard and logical
sequence of events. Each stage of the stock receipt cycle
is very important and must be carefully controlled and
supervised by the stores management. They typical stages
of the receipt cycle are sent out below:



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 Notification of the order being placed by purchasing
 This will inform stores department that goods have
been ordered and a provisional date and method of

delivery established, stores management can
therefore make provisional plans in relation to the
stock receipt system.

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 Confirmation of Delivery
 This will enable the storekeeper to make definite
arrangements for the delivery of a specific amount of

stock by confirming the method of delivery.
 Space allocation
 Once the delivery has been confirmed the step must be
taken to ensure that sufficient space is allocate for the

new delivery which may mean stock rearrangement.
This is essential if double handling is to be avoided.

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 Labour allocation:
 The unloading of goods will required some degree of
manual handling. In some cases a large number of staff

may be needed, and plans must therefore be made to
ensure that when the delivery takes place, labour will
be available.


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 Materials handling facilities allocation
 This must be planned to deal with the delivery. Certain
types of goods and packaging need specialized

materials handling equipment to unload and store
them properly. Therefore, plans must include this
factor so that the necessary handling equipment are
available.

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 Delivery of the goods
 At this point of the cycle, the goods actually arrive at
the store. Most of the following steps are necessary

for completing delivery of goods
◦ Unloading of the goods or packages
◦ Checking all packages against shipper’s manifest or
consignment note.

◦ Observing and recording condition of packing or other

evidences prior to acceptance.

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◦ Unpacking and checking all the goods to ascertain agreement
with supplier’s packing list and receiving copy of purchase
order.
◦ Recording shortage, damage on the materials and incorrect
items.
◦ Arranging for detailed inspection and testing by certain
instruments and apparatus.

◦ Recording receipts, identified to partial or complete on

receiving documents or materials received report.

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 Storage of deliveries
 Delivered items will have to be stored on the shelves, bins,
racks or whatever storage equipment is available. It is

necessary at this stage that goods are placed in their
correct location, otherwise, the whole issue and checking
system will be adversely affected.


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 Notification of delivery
 No matter which orders are unloaded, the goods have
to be checked for quantity, physical condition and

receiving

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 Checking that the number of packages is correct
 Examination of the packages for external signs of
rough handling or of having been tempered.

 Verify the weight of the incoming goods
 If weight and number of packages disagree, record and
establish complaints through

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 Receiving transaction does not complete until certain
documents and records are completed for evidencing
the transactions.
 Log book: The book called Goods Inward Book is a
register kept to record arrival of the goods in

organization and final details could be compared and
reported from the information recorded in this book.

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 The book assist in immediate recording of the receipts
or goods delivered, especially where there are large
number of small deliveries or a major consignment is
delivered but labour is not readily available to warrant
documentation but formal receiving activities must
take place immediately.
 The book can be a very good source of information for
GRN preparation.

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 It shows brief description of the goods sent, quantities,
mode of transport in which goods are dispatched,
packages etc.
 The document is sent to buyer before delivery date to
inform him/her on incoming materials

 The function of the document is to inform the buyer or
storekeeper about the goods to arrive so that

storekeeper may be able to prepare in advance to
receive the goods.

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 The document may be used by independent
transporter during transportation of customers goods
to inform in advance so that the receiving end is in
possession of it before the arrival of the goods/wagon
 Its role of the document is to enable the buyer to
certify consignment received, easy unloading to avoid

high demurrage charges and carrier to be paid his due
for freight

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 The document used by the supplier to show the
package contents in details. When goods are well
packed in advance it is important for one to have a slip
show briefly what is inside the packages.
 It is very useful as it shows the content openly and
hence it is not necessary to open the package.

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 The document is prepared by the seller declaring what
has actually being sold quantity wise, units of measure
etc and is signed by the person receiving the goods
certifying acceptance of the goods.

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 The copy of order form will be sent to store to inform
about expected delivery.
 The document is very useful in receiving and inspection as
it has information about the specification of the goods

ordered which assists in inspection process, again it is
useful in receiving because it assures the organization
that the goods were actually required by them and make
the work of checking easy.

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 Is the document used to show the goods, which have
been received into the organization. The receiving
section normally prepare it showing what has been
received, where they have come from and their value.
 The major function of the GRN is to take goods into
stock charge and is prepared in not less than four

copies distributed to accounts, stores, stock control
and purchasing dept.

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 Store- to accept custodial of goods in their charge
 Store accounts- to record receipts and certify for value
 Finance- cortication of invoice and payment proof
 Stock control – record quantities received and adjust
stock levels

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 Purchasing – to compare deliveries with orders
 Users- to inform about the arrival of the goods in the
firm.

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 The document used to record goods arriving with or
during inspection, damages/shortages have been found.
 The document is prepared where:
 Goods are delivered damaged or found in damaged state
at the time of receiving

 Goods shows shortage in comparison to supplier’s advice
note, delivery note or consignment note

 It is distributed to carrier, accounts, supplier and store.

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 Is a document prepared by the supplier of the goods
when goods are procured on credit terms. This
bell(invoice) is for the total value of the goods
dispatched against an appropriate delivery note.

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 Documents such as:
 Material Transfer Note: To notify on transferred
materials from one store to sub-store and vice versa

 Material return to store note: Notifying storekeeper
on material returned to store due to excessiveness

issues or from outside customers

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 Is examination of an incoming consignment for quality
and quantity verification. The reason to take this test
and examination for bought item is to assure the
buying firm that the quality bout is equivalent to the
money spent.
 The test and examination may be done through
laboratory test or any other tests using appropriate

equipment

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 100% inspection: This is conducted where items are
few and are of very high value. Incoming goods are
examined fully.
 Sampling inspection: A portion of the consignment is
examined and tested to represent the whole

consignment in terms of quality and quantity.
 Zero inspection: no inspection will be conducted if
value of items are very negligible are of standard items

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 Value of goods: when goods being delivered are very
valuable then it is important that inspection should be
done with very close supervision.
 Importance of the items: when item being delivered
plays an important role in the firm’s operation, it is

recommended that a through inspection should be
done on the goods.

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 Cost of inspection: where the cost of doing inspection
is very high offsetting the benefits of inspection then
such an inspection should not be done or only sample
should be carried out at a relatively costs.
 Losses of not inspecting: where the organization
stands to very little or minimum losses for not doing

inspection then it is worth to conduct inspection

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 Nature of the package:- The nature of the package used
and seals of packages may influence whether inspection
should be done or not. e.g. reliable, acceptable,
impregnated seals or packages which buyer may accept
and rely upon
 Suppliers’ reliability: inspection may not be carried out
in cans goods received from a very reliable suppliers

whose past history shows no defects materials have over
been received.

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1. Receiving Storekeeper: Storekeeper to inspect
incoming materials since have knowledge of the
materials.
2. Inspection department: inspection to be done with a
separate department dealing with inspection
3. Technical staff: inspection of a certain materials,
chemicals or equipments require technical skills to be
inspected by technician.

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4. Inspection at source: the inspection done at
suppliers’ premises

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 The quality of materials are controlled by quality
control. All materials with notification of “For
Rejection” will be rejected on recommendation of
quality control grounds

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 Sorting of the complied item with specified quality will
be accepted to custodial of the storekeeper after being
handled to storekeeper.
 Marshalling receipts: marshaling is the process of
segregating items awaiting inspection, binning or
racking or dispatching. Before items are put in their
respective racks, bins or shelves after receipt, they are
temporarily stored in special place called Marshalling
area

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Basic Store Keeping

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Basic Store Keeping

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 A store is a place where materials are stored for

BASIC STORE KEEPING.Mbwafu, F.

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keeping of materials and their

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BASIC STORE KEEPING.Mbwafu, F. A

BASIC STORE KEEPING.Mbwafu, F.

05/12/23 BASIC STORE KEEPING.Mbwafu, F.

i. Identifies items to be stocked in the store

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

The store manager reports directly to GM, stores

The store and purchasing integrate to form a

The store manager reports to Production manager.

materials, items can be grouped into three broad

BASIC STORE KEEPING.Mbwafu, F.

being sand and rock products and the second

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

majority in many organizations. These range from small

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

rendered from both sides. Shelves of this

BASIC STORE KEEPING.Mbwafu, F.

and the other side is completely closed i.e. it is a single

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F. A

BASIC STORE KEEPING.Mbwafu, F.

storing materials in the storehouse

which cannot be classified as shelving or binning. They are

BASIC STORE KEEPING.Mbwafu, F. A

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

BASIC STORE KEEPING.Mbwafu, F.

be enclosed with the goods or sent by post .

interest in trying to shed himself of the responsibility to the

number of parcels. BASIC STORE KEEPING.Mbwafu, F.

the supplier that makes settlement of claims easier.

has a strong reason to ensure that the receipts is fully satisfied in

very much quicker

the parcel, sometime their quality as well as quantity

through laboratory test or any other

BASIC STORE KEEPING.Mbwafu, F.

portion or part of the consignment is verified for quality

BASIC STORE KEEPING.Mbwafu, F.