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Unit 4: Material Control

difference between Stores Ledger and Bin Card Notes

There are some important differences between stores ledger and bin card. They are identified
below:
Stores Ledger Bin Card
(a) Entry will normally be made after the (a) Entry will normally be made just before or after
transaction takes place. the transaction takes place.
(b) Transactions may be summarized and then (b) Each transaction is recorded individually.
entry may be made.
(c) It records both the quantity and amount of (c) It records only the quantity of materials received,
material received, issued and balance. issued and the balance.
(d) It is kept in the costing department and (d) This record is kept in the stores departments,
therefore, entries in this record will be made and therefore, entries in bin card are made by
by the officials in the costing department or the store-keeper.
accounts department.

Classification and Codification of Materials

One of the important functions of the store-keeper in the stores department is the classification
and codification of materials. Classification refers to grouping of materials into three or four
categories on the basis of material nature. And codification refers to the procedure of assigning
symbols to each item of material stored. Since the symbols are shorter and simple and they are
used in names of materials. There are a number of methods of codification of the materials.
Following are the main methods of codification of materials:

(i) Numerical Method: Under this method, materials are codified with the help of the number
such as,
Material X : 101
Material Y : 102

Material Z : 103
(ii) Alphabetical Method: Under this method, each material will be allotted an alphabet such
as,
plastic Material : X

Glassware : AB
Rubber Materials : KLM
(iii) Decimal Method: Decimal method is similar to numerical method. Under this method,
decimal are used to codify the different types of materials.

plastic Material X : 101.1
1
plastic Material X : 101.2
2
plastic Material X : 101.3
3
Self Assessment

Fill in the blanks:
9. …………………… shows the materials returned to the stores department.

10. In …………………… entry is normally be made after the transaction takes place.

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