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Retail Business Environment

Notes When the materials are despatched for an outbound delivery, The purpose is to identify the
items packed at the receiver’s end. In case of any discrepancies, it facilitates the consignee to
check the contents and inform the consignor if there are any discrepancies.

Figure 12.11: Summary of Stores Procedures for Receipts and Issues

Figure 12.11 summarizes the procedures for receipts and issues in Stores. It provides a flow chart
from the time the purchase order is issued to the time that goods are issued. In brief, the basic
requirements of documentation related to receipt and issues in store should be as follows:
Receipt of Stores has to put in place adequate physical safeguards in the goods receipt procedure;
properly document and account for each goods receipt voucher; establish policies and procedures
for handling exceptional matters of goods receipt; and establish written procedures for lodging
claims for supply and delivery problems

Issue of Stores has to properly document and account for all delivery vouchers; issue store items
on a consistent basis; and properly controls the issue of goods e.g. check the voucher authorizations
against a record of specimen authorized signatures.

Notes The ultimate requirement of stores documentation is to ensure that goods are
received, checked, stored, delivered and returned in a consistent manner.

12.7 Material Verification and Control

Checking of stock by physical verification is an essential feature of stock control. Such checking
may be periodic or continuous. Under periodic stock verification system, all the items of stocks
are to be verified once a year, while in a continuous system checks are always ongoing.

Continuous Stock Verification

Continuous stock verification is generally used for perpetual inventory systems. Stock
verification starts when all records are complete. It rests with the Stores Officer to get the records
completed before the Stock Verifier starts to verify the stock. Under continuous stock verification
plan, the stock verifier counts or weighs or measures the physical quantity of a particular item,
and records his results in the ‘stock verification sheet’. Stock verification sheet is a preprinted

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