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Issuing of Materials

Materials requisition

Materials should be issued by the store-keeper only on presentation of a duly authorized “Materials Requisition Note”. It has defined as “a document which authorizes and records the issue of material for use.” The requisition is generally signed by the foreman but in case, materials are required in large quantity, authorization by a higher officer may be made necessary.

The store keeper will make entries regarding the issue of materials in the appropriate bin cards and, after initiating the requisition, will send it to the cost office where postings will be done in appropriate job and stores accounts.

The requisition is prepared in duplicate. One copy is retained for reference by the departmental who initiates it.

Bill of materials

A bill of materials is a schedule of materials needed for a job or unit of production. It is generally prepared by the Engineering or Planning Department as soon as an order is received. It serves as a standard list of materials required for a particular job, process or work order.

Four copies of bill of materials are prepared. One copy each is sent to the production, Stores and cost accounting departments and the fourth is retained by the Planning or Engineering Department.

A bill of materials performs the following functions:

1. It serves the purpose of advance intimation to all concerned of the orders to be executed.

2. It enables the stores department to issue a purchase requisition so that materials are kept ready at the time of manufacture.

3. It facilitates accounting of materials consumed as entries in totals can be passed to the relevant jobs and processes.

4. It may be used as an instrument of authorization for the store-keeper to issue the required materials at the stated time. This will save considerable clerical works by dispensing with the necessity for several material requisitions.

5. It can work as a basis for cost accounting department to prepare a material cost budget.

6. It can function as a controlling technique for the cost accounting department through comparing actual materials used with the quantity as specified in the bill of materials.

7. The production department can also use it as a controlling technique for materials used in the department.

Materials returned note

Materials supplied to a job may be in excess of its requirement or may be defective. In such a case the job concerned will return the materials to the stores with a “Materials Returned Note”. The note will be prepared in duplicate and one copy will be returned by the stores acknowledging the receipt the receipt of goods from the job, returning materials. The other copy will be kept by the stores for reference. Materials returned note is similar to materials requisition note and, therefore, to distinguish the former from the later the former may be printed in red ink.

On receiving the materials the store-keeper will make entry on receipt side of the appropriate bin card and then send to the “Materials Received Note” to the cost office which will give necessary credit to the concerned job.