Stores requisition definition
/What is a Stores Requisition?
A stores requisition is a form that a user fills out when removing parts from storage. The form is used by the organization's cost accounting system to charge the cost of the parts to a job, as well as to track inventory levels. When inventory is being sent to a department, the form is the basis for a charge to that department, and so is considered a source document of the accounting system.
The information included in the form includes these items;
Requisition number. This is a unique number that identifies each stores requisition form. It is useful for tracking whether any forms have been lost.
Requisition date. This is the date on which the user requested the inventory item. It is used to track the performance of the warehouse department in picking items from stock.
Requesting department. This field identifies the department to be charged for the cost of the items being pulled from stock.
Item description. This field may be quite large, to accommodate either a part number or a full description of the item needed.
Unit quantity requested. This field is used to state both the quantity needed and the unit of measure.
Approval signature. This field contains the signature of the manager who has approved the requisition.
A stores requisition is used in a manual materials handling process. In a computerized system, a bar code scanner is typically used to automatically load most of this information into a database.
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Stores Requisition Controls
Several controls should be installed for a stores requisition to ensure accuracy, prevent fraud, and maintain proper inventory tracking. These controls include the following:
Authorization control. Each stores requisition form should require approval from an authorized supervisor or manager before parts can be issued. This ensures that only necessary materials are requested and prevents unauthorized access to inventory.
Sequentially numbered forms. Stores requisition forms should be pre-numbered sequentially to prevent missing or duplicate requests. This helps in tracking all transactions and ensuring completeness in records.
Segregation of duties. The employee requesting materials should not be the same person approving the requisition or issuing the inventory. This reduces the risk of fraud and unauthorized stock removal.
Proper documentation. A copy of the stores requisition should be kept by the requesting department, the stores department, and accounting for reconciliation. This ensures transparency and allows for audit trails.
Inventory control. The inventory system should be updated immediately after a requisition is processed to reflect the new stock levels. Periodic physical inventory counts should be conducted to verify that stock records match actual inventory.
Job cost allocation control. Each requisition must include a job or project code to ensure that the cost of materials is properly allocated. This prevents misallocation of costs and ensures accurate financial reporting.
Approval limits for requests. Different authorization levels should be set based on the value or quantity of materials requested. For example, a supervisor may approve requests up to a certain limit, while larger requests require approval from a senior manager.
Verification at issue point. Storekeepers should verify the requisition against stock records before issuing materials. The person receiving the items should sign the form to confirm receipt.
Audit and review. Internal audits should be conducted regularly to review stores requisitions for compliance with company policies. Any discrepancies should be investigated and corrective actions taken to prevent future issues.
These controls help ensure that materials are issued accurately, efficiently, and securely, minimizing inventory shrinkage and improving cost tracking.