Stores Accounts
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- The stores accounts shall be under the functional control of the Head of Accounts and Department.
- Stores accounts shall maintain details records of transaction of Materials held in store.
- The main function of the stores accounts:
- To check the initial document of receipt & adjust their values in the books of accounts. Maintaining the necessary accounts record/store ledger.
- To price the inventory items against individual MRR, SR, SRM, etc. and post them in the stores ledger.
- To compare the stores ledger balance and reconcile the total figures with those of the financial accounts/ ledger.
- To arrange of physical Inventory taking of all inventory items at the end of each financial year.
Pricing of Materials against MRR related to foreign purchase
- On receipt of Material Receipt Report (MRR) the stores accounts shall be kept out them and record the details.
- All costs as and when incurred, should always be debited to stores in-transit account of the financial accounts.
- At the time of opening Letter of Credit (L/C), the L/C margin paid to the bank should be debited to L/C margin account in the financial ledger for further adjustment of L/C margin account.
- Insurance premium paid should be noted in the Import L/C register in addition to its booking in stores-in transit account in the financial ledger.
- As regard C&F value of imported goods, on retirement of documents either on down payment or on release, the relevant supplier's invoice, Bill of lading, etc. should be collected from bank along with bank's debit note. The documents should be checked and matched with purchase order terms and conditions of L/C, prevailing currency exchange rate, etc. On the date of retirement and if everything is found in order, the cost of the goods i.e. C&F value portion shall be debited to store-in-transit account. It should be ensured that L/C margin paid earlier against this import is duly adjusted.
- All other payments like as custom-duty, sales-tax charges, import permit fee, C&F agent expenses indenter's commission, inspection charges, bank charges, etc. shall be booked in the store-in transit account as and when paid to find out the total cost of that particular import.
Pricing of Materials against MRR of Local Purchase
- On receipt of the relevant copy of MRR the officer/staff responsible for pricing shall calculate the cost on the basis of unit price as mentioned in the purchase order.
- Advances, freights and other charges paid shall be taken into consideration at the time of pricing.
Pricing of Materials against MRR for Cash Purchase
- Price of materials in the MRR for cash purchased items shall be given on the basis of the relevant cash memo by the stores/Inventory at the time of preparing MRR.
- Advance made for cash purchase shall be debited to cash purchase clearing account.
- All advances made for cash purchase shall be adjusted before closing of the monthly/yearly accounts
Pricing of Materials against MRR issued for Materials Received on Loan
- Pricing of materials received on loan from any of the sister concern under Auto Group or from any other sources, shall be done on the basis of the last purchase price or on the basis of debit note receiver from the lender.
- When the material is returned, debit note shall be given to the Store received on loan account with the value already credited against MRR.
Pricing of Materials against SRM
Where the unused material is returned, pricing is to be done on the bas: of store requisition under which this was issued. After pricing the cost and be debited to stores control account and credited to the section to which the material was previously issued.
Pricing of Stores Transfer Memo
Pricing of materials transferred from one store/sub-store to another stores/sub-stores, shall be done on the basis of price as per stores ledger,
Pricing of Materials against Stores Requisition (SR)
- Pricing of materials against stores requisition (SR) shall be done on the basis of unit price.
- On receipt of SRs from any stores of MPIC Section, pricing and posting SRs of each individual day shall be completed on the same day. In case, pricing and posting of SRs should be kept pending.
Store issued on loan to sister concerns
If any material is issued to any sister concern on loan the pricing of the materials against SR shall be made on the basis of existing book value.
Physical Inventory Taking of Stores
- Continuous Inventory taking.
- The In-Charge of Procurement Department to make a program for taking actual physical inventory of stores/materials round the year and check up its Store Ledger balance therewith. This shall be a continuous process and shall continue without any break.
- The officers/staff assigned to take continuous physical inventory of stores shall go to store, Check the items physically & record their findings in the prescribed from submit a copy of .the same to the Head of Accounts Section to take necessary action as any be needed, with a copy to the Head of Procurement Department
- Annual Physical Inventory Taking
- At the end of each financial year, preferably in the second half of June, stores accounts shall arrange for physical inventory taking of all stores held in inventory. For this purpose, a committee shall be constituted by an administrative order taking 01 (one) representative from accounts, 01 (one) from Procurement, 01 (one) from administration and 01 (one) from Store section. This committee shall co-ordinate and supervises the whole inventory taking operation/process. The senior most members shall be the Chairman of the Committee.
- Immediately after completion of annual physical inventory taking? Stores accounts shall take appropriate steps for adjustment of-excess/shortage/damages as per provision of financial code/power.
Accounting of Logistic items
At the end of each financial year, physical inventory of logistics shall be taken as usual under the supervision of the Procurement Department.
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