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Receiving of Materials

The work of unpacking the goods and their verification is performed by the receiving department. The receiving clerk verifies the contents of the packages with the consignment notes sent by the suppliers, in triplicate, along with the packages. He enters the date of receipt, quantity received by him, and the condition of goods, in the consignment notes. The original copy is sent by him with the materials received report in duplicate to the stores department. The other two are sent back to the supplier. Sometimes a copy of the purchase order, without the quantities filled in, is also supplied to the receiving clerk. It serves two purposes:

(i) The receiving clerk has to face the difficult task of clarifying the materials.

(ii) It results in procuring an independent report about the exact specification of materials, from receiving clerk.

Five copies of the materials received report are generally prepared. The original is sent to the purchasing department as an indicator of the fact that the goods ordered have been received. Three copies are sent to the stores or the production department along with the materials.

In most organisations as explained above, purchasing of materials and stores is a centralized function. There is a separate purchasing department and its makes the entire purchases as per the procedure explained in the preceding pages.

However, decentralized purchasing will not give those economies and benefits which are available under centralized purchasing will not give those economies and benefits which are available under centralized purchasing. In any case each organisation has to adopt a system which suits it most, keeping in view its circumstances. However, it can be said that a concern should follow both the systems – centralized purchases for materials required in bulk and decentralized purchases for materials required in small quantity as per specific requirements of a particular department.

Imprest system of stores

The imprest system of stores is resorted to in large undertakings to overcome the disadvantages of centralized storing. In case of this system a sub-store is attached to each production department which is given an operating stock slightly more than the normal requirements. At the end of specified period exact quantity issued is replenished in bulk.