4.1 Maintenance of stores documents

Maintenance of stores documents means preparing, completing, checking, updating, storing and protecting the forms and records that account for every movement of goods into, within and out of the stores. Correct documents are the only proof that goods were ordered with authority, received in the right quantity and quality, kept safely and issued to the right user. They support stock control, payment of suppliers, audit and the investigation of losses.

Example: a Kenyan building materials wholesaler keeps a complete trail for each delivery of steel bars: the purchase order, the supplier's delivery note and invoice, the inspection report, the goods received note, the bin card and ledger entries and, later, the issue vouchers, all filed so any auditor can follow the steel from order to sale.

Good practice in maintaining stores documents

• Use pre-numbered forms: Serially numbered documents make it easy to detect missing or unused forms.
• Complete documents fully and promptly: Every field, date, quantity and signature is filled in at the time of the transaction, not later from memory.
• Authorise before action: Goods are ordered, received, issued or written off only against a document signed by an authorised officer.
• Separate duties: The person who orders, the person who receives and the person who keeps the records should be different people.
• Update records the same day: Bin cards, ledgers and the computer system are posted immediately so balances are always current.
• Reconcile regularly: Bin cards, ledger balances and physical stock are compared regularly and differences investigated.
• Correct errors properly: Mistakes are corrected with an authorised adjustment, not by erasing or overwriting entries.
• File and keep securely: Documents are filed in order, protected from loss, fire and damage, and kept for the period set by the organisation's policy and the law.
• Back up electronic records: Computer records are backed up and protected by passwords and access rights.

4.1.1 Categories of store documents

Stores documents are grouped into categories according to the stage of the stores cycle in which they are used. The categories follow the movement of goods: ordering, delivery, inspection, issue, inventory recording, financial settlement and dealings with customers. Knowing the category of a document helps staff to complete it at the right stage and to file it correctly.

4.1.1.1 Ordering documents

Ordering documents are used to request, approve and place orders for goods. They show that each purchase was needed, approved and properly placed with a supplier.

• Purchase requisition: Raised by the user department or the stores, when stock reaches the reorder level, to request that goods be bought.
• Request for quotation: Sent to suppliers asking them to quote prices and terms for the goods required.
• Quotations: The suppliers' replies giving prices, delivery times and terms, used to choose the supplier.
• Local purchase order (LPO): The formal order issued to the chosen supplier, stating the goods, quantities, prices and delivery terms. It is the supplier's authority to deliver.
• Contract or framework agreement: Used instead of single orders where goods are bought regularly from one supplier under agreed terms.

4.1.1.2 Delivery documents

Delivery documents come with, or before, the goods from the supplier or transporter and are used to check what has arrived. They include the copy of the LPO, the delivery note, the invoice, the packing list and the advice note, which are described in 4.2. For imported goods, the bill of lading or air waybill and the customs entry documents are also delivery documents. The storekeeper signs the delivery note only after counting the goods.

4.1.1.3 Inspection documents

Inspection documents record the checking of goods for quantity and quality before they are accepted into stock.

• Inspection report: Records the results of inspection against the order specification, including any defects or shortages.
• Inspection and acceptance certificate: Signed by the inspection officer or committee to accept goods that meet the specification.
• Rejection note: Records goods refused because they are faulty, wrong or excess, so they can be returned to the supplier.
• Discrepancy report: Records differences between the documents and the goods delivered, such as short or damaged deliveries.
• Goods received note (GRN): Prepared once goods are accepted; it enters the goods into stock and supports payment of the supplier.

4.1.1.4 Issuing documents

Issuing documents authorise and record the release of goods from the store to users or to other locations.

• Stores requisition (issue voucher): Raised and signed by an authorised officer of the user department, stating the items and quantities required; it becomes the record of issue.
• Counter requisition and issue voucher: A combined form on which goods are requested, approved, issued and received across the stores counter.
• Stores transfer note: Records goods moved between stores or branches.
• Materials returned note: Records unused goods returned to the store by the user.
• Gate pass: Authorises goods to leave the premises and is checked by security at the gate.

4.1.1.5 Inventory documents

Inventory documents record the stock held, its location and its movements, and are used for stock control and stocktaking.

• Bin card: Kept at the location of each item, showing receipts, issues and balance in quantity.
• Stores ledger: Shows receipts, issues and balances in quantity and value for each item.
• Stock location record: Shows where each item is kept.
• Stock sheets: Record quantities counted during stocktaking.
• Stock adjustment note: Authorises correction of records after a count or write-off.
• Board of survey report: In public bodies, the report of a board of survey appointed at the end of the financial year to verify stores and assets; it records the quantities found and lists items found unserviceable, obsolete or surplus.
• Disposal report: Lists obsolete, damaged or surplus items recommended for disposal, with the method of disposal proposed.

4.1.1.6 Financial documents

Financial documents link the movement of goods with payments and the accounts.

• Supplier's invoice: The supplier's demand for payment, checked against the LPO and GRN before payment.
• Payment voucher: Prepared by the accounts department to authorise payment of the supplier, supported by the LPO, invoice and GRN.
• Credit note: Issued by the supplier to reduce the amount owed, for example for returned or short-delivered goods.
• Debit note: Issued by the buyer to the supplier to claim a reduction or to record an amount charged back.
• Statement of account: Sent by the supplier to show invoices, payments and the balance owed over a period.
• Receipt: Evidence that a payment has been made or received.

4.1.1.7 Customer documents

Customer documents are used where the stores supply goods to customers, as in a distributor's or wholesaler's warehouse, or to internal users treated as customers.

• Customer order or sales order: States the goods and quantities the customer wants and is the authority to pick the goods.
• Picking list: Lists the items and locations to be picked for an order.
• Delivery note to the customer: Accompanies the goods and is signed by the customer on receipt as proof of delivery.
• Sales invoice: The demand for payment sent to the customer.
• Customer returns note: Records goods returned by a customer, with the reason, so they can be inspected and credited.
• Customer complaint record: Records complaints about delivered goods and the action taken.