The stores may have functional sections to look after principal functions and follow set policy and procedure. In the working of the stores the following functions are included:
1. Receiving function
2. Storage function
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3. Accounting function
4. Issue function.
1. Receiving Function:
The store in a plant has four kinds of inventories to be received.
(a) Raw Material.
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(b) Stores and supplies (materials consumed in operations e.g., coal, oil).
(c) Tools and components, (to keep the machines and plant running).
(d) Materials-in-process of manufacturing (semi-manufactured goods). For finished products ready for sale, we have a warehouse.
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Procedure for receiving materials or inventories has the following steps:
(a) Receiving incoming materials.
(b) Checking and inspection of these materials.
(c) Recording the incoming goods in ‘Goods Received Book’
(d) Preparing and sending goods inward note to the purchasing section.
(e) Intimating purchasing section regarding damages loses, defective goods, surplus or deficit supplies etc. along with rejection forms or notes.
(f) Returning defective or damaged goods to the supplier as per direction of purchase department.
(g) Depositing the materials to the appropriate store locations for storage.
When finished products are received for the storage, the ware house keeper will issue an acknowledgement and intimation to the sales organisation that such and such goods are ready for sale.
2. Storage Function:
The stock rooms are in-charge of storage, safety, care and disbursement of materials. We may have separate stock room for each class of inventories. We may have multiple stock rooms located at different places in the plant in addition to general or main store.
The store keeper has to receive the materials for actual storage, classify the materials, provide easy identifications to facilitate quick location, keep all goods at appropriate places, and maintain up-to- date inventory records and accounts and issue materials as per written instructions. Each article must have label and identification mark — stamping, embossing, colour, coding, writing or painting. Location of any article can be easily found out if proper marking is made.
3. Accounting Function:
Proper and up-to-date records and accounting can facilitate inventory control as well as financial checks. This section is called upon to keep on a daily basis complete record of receipts and issue of materials. It is also in-charge of continuous stock-taking and inventory valuation. The chief activity of this section is inventory control.
4. Issue Function:
The store keeper is a commodity banker. He must take (just like a banker) necessary precautions and actions in both cases viz. Incoming goods flow and outgoing goods flow. Items are issued or supplied for direct use or merely on loan.
Goods are issued against material requisition slip (written authority). All particulars of issue must be duly posted on the Bin Cards and on Stock Control Cards.