Effective stock control depends on using accurate tools and documentation to monitor, record, and manage inventory throughout its lifecycle. These tools and documents support real-time decision-making, internal control, and financial accuracy. They ensure that inventory is properly tracked from purchase to usage or sale, reducing the risk of loss, theft, or stock discrepancies.
1. Bin Card
- Purpose: A physical card attached to each bin or storage location showing the quantity of stock received, issued, and remaining.
- Used By: Storekeepers for real-time tracking of individual items.
- Benefit: Helps in maintaining accurate stock levels at the storage point.
2. Stores Ledger
- Purpose: A detailed record of stock movement maintained by the accounts department.
- Contents: Quantity and value of receipts, issues, and closing balances of all inventory items.
- Benefit: Provides a centralized inventory record for financial and cost accounting purposes.
3. Purchase Requisition
- Purpose: An internal request document to initiate the purchase of stock.
- Contents: Item name, quantity, required date, and requesting department.
- Benefit: Ensures that purchases are authorized and necessary.
4. Purchase Order (PO)
- Purpose: A formal order sent to suppliers for the supply of goods.
- Contents: Supplier name, description of goods, quantity, price, and delivery terms.
- Benefit: Acts as a legal contract and reference document for receiving and payment.
5. Goods Received Note (GRN)
- Purpose: Confirms the receipt of ordered stock from suppliers.
- Contents: Item details, quantity received, date, and condition of goods.
- Benefit: Used to verify deliveries and update inventory records.
6. Material Requisition Note (MRN)
- Purpose: Internal document used to request the issue of stock from stores to departments.
- Contents: Name of item, quantity required, department, and authorization.
- Benefit: Ensures proper authorization and control over inventory usage.
7. Issue Voucher / Stock Issue Note
- Purpose: Records the actual issue of materials from stores to users.
- Contents: Reference to MRN, quantity issued, and receiver’s signature.
- Benefit: Provides proof of inventory movement and supports stock adjustment.
8. Return Note
- Purpose: Used when unused or defective items are returned to the store.
- Benefit: Updates stock records and supports adjustments in inventory balances.
9. Stocktaking Sheet
- Purpose: Used during physical inventory counts to record actual quantities on hand.
- Benefit: Helps reconcile physical stock with records in the system or ledgers.
10. Inventory Management Software
- Purpose: Automates the tracking, reporting, and analysis of inventory data.
- Examples: Zoho Inventory, QuickBooks, SAP, Oracle NetSuite.
- Benefit: Enables real-time inventory control, reduces manual errors, and integrates with other business functions.
11. Stock Adjustment Note
- Purpose: Used to document and authorize adjustments due to discrepancies, losses, or damages.
- Benefit: Maintains audit trails and ensures accurate stock valuations.
12. Inventory Reports
- Types: Include stock valuation reports, reorder reports, slow-moving stock reports, etc.
- Benefit: Provides essential insights for procurement, cost control, and strategic planning.
Role of Documentation in Effective Stock Control
Proper use of stock control documents and tools ensures transparency, accountability, and accuracy in inventory management. These instruments form the foundation of internal control systems, help prevent fraud and wastage, and support informed decision-making at all levels of the organization.