SOP on Physical Verification of Materials in Stores

SOP on Physical Verification of Materials in Stores

1.0 Purpose: This SOP describes the guidelines for need of verification of stored materials.

2.0 Scope: This SOP applies to stores staff and purchase department. 

3.0 Responsibility: Production Manager to ensure that the procedure is followed.

4.0 Materials and Equipment: As required

5.0 Procedure: Proper stock records are kept in stores ledgers. When materials are received or issued, they are properly recorded and new balance is struck at the end of every transaction. Principally, bin must contain quantity which are shown in “balance” column of stores ledger. But sometimes, book-balance and physical quantity does not tally. The important reasons for such discrepancies are as under – 
a. Wrong entry in ledger.
b. Placement of material in wrong bin.
c. Mixing in adjacent bin.
d. Loss due to breaking the bulk.
e. Evaporation of alcoholic materials.
f. Pilferage etc.

All items are verified periodically through counting, weighing, measuring etc at the end of specific period usually last day of the month or last day of the accounting year. Issues are not made during verification period and this gives correct picture of stock-in-hand on last day of month or accounting year. 

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