24. Verification of Stores Records. When indexed in this manner the stores record of any article can be quickly located, and the sectional divisions will assist greatly in verifying the records. While the stores records are intended merely as records of material in stock, their accuracy must be verified by an actual inventory, just as the cash account is verified by a count of cash on hand. However, if thoroughly classified, it is not necessary to verify all of the stores records at one time; they can be verified by sections, or the record of a single article can be verified by an article inventory, without regard to other records.
Accounts in the ledger should be arranged to correspond with the stores classifications, that is, purchase accounts should be carried with materials forming the main divisions of the stores records; as Hardware, Bar Steel, Foundry Material, Foundry Supplies, and Factory Supplies. When the stock of one class, as hardware, is inventoried, the result should be recorded on the regular inventory sheet, priced, and extended, and the total compared with the hardware purchase account in the ledger. Any discrepancies should be adjusted at once, but if the records are carefully kept, and an inventory of each class is taken two or three times a year, the discrepancies should be practically nil.
If the routine prescribed is faithfully followed, there is no theoretical reason why stores records should not check as closely as cash, with the possible exception of bulk stores, like fuel and ores, where estimates are necessary. Even then, if inventories are taken when these stores are at the lowest point, there should be little difficulty in arriving at accurate results. However, the greatest responsibility rests on the chief stores clerk. He must not let a single pound of material leave the storeroom without an order, for it is on the accuracy of his records that all of the accounts are based. The order copies received in the cost department furnish the basis for all material charges. Here prices are entered and extensions are made. The chief cost clerk will transmit to the chief accountant weekly or monthly recapitulations of all material charged out. The chief accountant will credit his purchase accounts and debit Manufacturing, Maintenance, Repair, or Expense accounts as the case may be. Purchase accounts thus become controlling accounts of the stores records, and the latter takes its legitimate place as an integral part of the accounting system.
RECORD FORMS
25. All forms for stores records, no matter what the class of material recorded, possess certain characteristics in common; yet the information required about each special class is usually of such nature that a special form is advisable. This may mean the use of several forms in the same establishment.
When installing any system, however, it is more economical to invest more money in printing and have forms that fit exactly, than to attempt to make special records conform to forms prepared for other purposes. If certain specific information is required, the form should be designed to exhibit just that information, and if the form is properly designed, the saving of time both in recording and consulting the record will much more than offset the slight additional cost of special printing.
The number of forms must not be so large as to cause confusion, but against the opposite extreme the cost of time must be considered. It will be found that the value of clerks' time is greater than the cost of printing.
Fig. 25. Form for a Stock Record of Materials and Supplies
26. Material and Supplies. For material and supplies the same form will be found satisfactory in most establishments. The form should provide for the name of the material, the unit in which it is purchased, the purpose for which used, the location in the storeroom, and quantities received and delivered. Fig. 25 shows a form designed for records of this class. In addition to the headings specified above, spaces will be noted at the top of this card for maximum and minimum. These refer to the quantities of material to be carried in stock and represent the high and low limits. These limits should be established for each article in stock and when any article reaches the low limit a report should be sent to the purchasing agent on the form shown in Fig. 11, Page 14. This form provides for a record of order numbers for all deliveries, a feature which should be incorporated in all cases where the form is for the use of a manufacturing business. At the extreme right is a column headed verified. When an inventory is taken, the date and balance on hand is to be entered under this head.