Material control involves maintaining accurate and systematic documentation throughout the material flow—from procurement to usage. These documents ensure proper authorization, traceability, accountability, and accuracy in recording material transactions. They form the backbone of effective material management and support internal control and audit processes.
1. Purchase Requisition
- Purpose: An internal document generated by a department (usually stores or production) to request the procurement of materials.
- Contents: Item description, quantity, required date, and department requesting the material.
- Importance: Initiates the purchase process and ensures authorization.
2. Purchase Order (PO)
- Purpose: A formal order issued to a supplier to provide specified materials.
- Contents: Supplier details, item specifications, quantities, price, delivery terms, and payment terms.
- Importance: Forms a legal contract between the buyer and supplier.
3. Goods Received Note (GRN)
- Purpose: Confirms receipt of materials from the supplier.
- Contents: Quantity received, condition of goods, date received, and reference to the purchase order.
- Importance: Basis for updating inventory records and processing supplier payments.
4. Inspection Report
- Purpose: Records the results of quality and specification checks performed on received materials.
- Contents: Acceptance/rejection status, reasons for rejection, inspection criteria.
- Importance: Ensures only quality-compliant materials are accepted into inventory.
5. Stores Requisition (Material Requisition Note)
- Purpose: Used by departments to request materials from the store for internal use.
- Contents: Item description, quantity required, department name, and authorization signature.
- Importance: Authorizes and tracks the internal issue of materials.
6. Issue Voucher
- Purpose: Confirms the release of materials from the store to the requesting department.
- Contents: Requisition reference, item details, quantity issued, and recipient acknowledgment.
- Importance: Ensures accountability and updates inventory records.
7. Return Note (Materials Return Note)
- Purpose: Documents the return of unused or defective materials from departments back to stores.
- Contents: Item details, quantity returned, reason for return.
- Importance: Updates stock records and ensures proper reconciliation.
8. Bin Card
- Purpose: A physical record card maintained at the storage location (bin) for each item.
- Contents: Date-wise details of receipts, issues, and balances of material.
- Importance: Provides real-time inventory levels at the storage point.
9. Stores Ledger
- Purpose: A comprehensive accounting record of all material movements.
- Contents: Opening balance, receipts, issues, closing balance, value of transactions.
- Importance: Supports cost accounting and reconciliation with financial records.
10. Material Transfer Note
- Purpose: Records the movement of materials from one department or location to another.
- Contents: Item details, source and destination departments, quantity, and transfer date.
- Importance: Tracks internal logistics and maintains stock visibility across locations.
11. Inventory Adjustment Note
- Purpose: Used to document discrepancies discovered during stocktaking or audits.
- Contents: Item count differences, reasons for adjustment, and authorization.
- Importance: Maintains accurate and reconciled inventory records.
Strategic Role of Documentation in Material Control
Accurate and timely documentation is the foundation of material control. It ensures traceability, accountability, and data integrity throughout the material management process. Proper documentation supports informed decision-making, reduces material-related losses, and facilitates internal control and external audits.