What is Store Keeping?
What is Store keeping accounting? Types of shop keeping and Objective of shop keeping?
What is Store keeping accounting? Types of shop keeping and Objective of shop keeping?
Store keeping
Meaning of shop keeping
Store keeping is a specialized and of import percentage of materials command that is peculiarly concerned amongst the physical storage of goods. The storekeeper is responsible for safeguarding in addition to keeping the materials in addition to suppliers inward proper house unit of measurement required inward production
Objective of shop keeping
Store keeping involves treatment in addition to recording of materials. Following are the principal objective of shop keeping:
i. Effective job of available shop space.
ii. It avoid over in addition to nether stocking of materials.
iii. Efficient in addition to economical receiving, treatment in addition to issuing of stores.
iv. Protecting goods stores against fire, loss, theft, in addition to obsolescence.
v. Ensuring adequate in addition to timely provide of shop nether proper requisition in addition to authorization.
Types of stores
Although in that location are diverse types of store, next are the normally used past times manufacturing company. Basically, in that location are 3 types of shop equally follow:
• Centralized stores
• Decentralized stores
• Centralized stores amongst sub-stores.
Centralized stores
If in that location is entirely i shop to have in addition to number materials to all subdivision of a concern, such shop is called entertained stores. In this type of store, all materials are kept at i fundamental store. Materials are received past times in addition to issued from stores subdivision inward centralized stores. This type of shop is used past times nearly of the manufacturing company. The principal objective of centralized shop is to buy in addition to number all the materials required past times the entire department.
Advantage of centralized stores
i. There is a ameliorate command over shop nether centralized stores since all the cloth are stored centrally. This enables effective supervision of stores.
ii. There is minimum investment since it is non necessary to constitute separate shop for each department.
iii. Centralized stores attain economic scheme boot the bucket to less administrative in addition to supervision costs.
iv. The layout of stores tin last made uncomplicated in addition to scientific.
v. It helps to gain expertise inward shop management.
Disadvantage of centralized stores
i. There is a really high gamble nether centralized shop inward illustration of theft, burn downwards etc.
ii. It increases shipping toll because of the distance to other departments.
iii. It equally good increases the materials handing cost.
iv. It requires high supervision cost.
v. It needed to a greater extent than infinite for storing materials.
Decentralizes stores
This shop has been emerged due to disadvantages of centralized stores. It is a only contrary scheme of centralized stores. Under this scheme of store, in that location is an independent or separated shop inward each department. Each subdivision has to brand a separate shop for recording the materials en each department. Each subdivision has to brand a separate shop for recording the materials they required. It is non then pop because it requirement to a greater extent than toll to gear upwards a separate shop inward each department.
Advantages of decentralized stores
i. Internal shipping toll tin last saved.
ii. Material treatment physical care for is rapid inward this system.
iii. Controlling systems is to a greater extent than better.
iv. Loss tin last minimized inward this system.
Disadvantages of decentralized stores
i. More storekeepers are needed.
ii. More toll for staff in addition to management are required.
iii. Each subdivision needs separate location for store.
iv. More investment inward needed.
Centralized stores amongst sub-stores
In this store, the implores scheme of stores is used where each sub-store is given unopen to showtime stock. In large organization, the fundamental shop is far from production subdivision in addition to due to which shipping toll increases. To cut down the toll of handing in addition to transportation, a sub-store is maintained nearby production department. Sub-store is managed past times fundamental store. Sub-store gets materials from fundamental store.
Advantages of fundamental stores amongst sub-stores
i. It facilitated for command in addition to supervision.
ii. It solved the job of infinite availability.
iii. It reduces the shipping cost.
iv. There volition last minimum loss inward illustration of accident.
Disadvantages of fundamental stores amongst sub-stores
i. Store command is existence hard in addition to complex.
ii. Fixed toll volition increment due to extra staffs.
iii. Required to a greater extent than investment is stores.
iv. Stock checking volition last fourth dimension consuming.
Location of store
Place is equally good known equally location. So location of shop agency the house where the shop is situated. While selecting the location of store, buy subdivision must last careful inward diverse facts. Because location of shop at proper house helps to minimize the toll of treatment materials. The layout of the shop must last considered. The shop should last divided into racks which should last futurity sub-divided into pocket-size spaces. This infinite is knows equally bin.
Factors to last reckon for selecting location of stores
i. It should last located at a fundamental in addition to rubber place.
ii. It must last located close to production department.
iii. It must accept plenty infinite to come about the buy materials.
iv. It should last easily accessible to the other entire department.
v. It must last equipped amongst plenty bins in addition to racks.
Storekeeper
Storekeeper is a somebody appointed for taking aid of store. He is in-charge of the shop in addition to responsible for the command of store. Normally, all the large manufacturing concern appoints a storekeeper. He has a of import role inward shop keeping. The storekeeper must accept unopen to technical cognition in addition to sense is shop routine. Except this, he should last trained, honest, loyal in addition to responsible. Storekeeper is equally good called shop managing director or shop superintendent.
Duties in addition to responsibilities of storekeeper
Influenza A virus subtype H5N1 storekeeper should last responsible for the next functions:
i. Avoiding harm in addition to deterioration of goods.
ii. Providing safety against loss, burn downwards in addition to accident.
iii. Performing checking percentage on piece of work completed.
iv. Protecting against the consequences of non-availability of materials.
v. Recording in addition to receiving of materials inward store.
vi. Classification in addition to codification of items which is received past times store.
vii. Prohibited unauthorized persons from entering within the store.
Store keeping physical care for or shop routine
After receiving materials past times receiving or shop keeping department, shop keeping has to perform diverse activities relating to materials. It is known equally shop keeping procedures or shop routing nether shop routine, next physical care for has to last done:
i. Classification in addition to codification of materials.
ii. Recording of materials received
iii. Issuing of materials
Classification in addition to codification of materials
Classification in addition to codification of materials facilitates prompt identification of the materials inward storage when they are existence issued to production departments. All items inward the stores should properly last classified in addition to codified. Goods which are received past times shop must last scientifically classified in addition to coded.
Classification of materials
As per the nature of materials, it must last classified inward diverse groups of goods. Materials are classified to brand issuing, storing in addition to identifying materials easily in addition to quickly. So materials are initiative off classified on the Earth of their nature in addition to types. It may last classified equally structure materials, consumable store, spare parts, lubricating etc.
Codification of materials
After classification of materials inward diverse groups, they are codified again. Coding agency to a numbers or distinctive symbols to a specific materials of stores amongst a organisation for prompt identification. It is physical care for for assigning symbols for each item inward properly amongst proper arrangements to facilitate storing. The symbol allotted to the materials is known equally 'code'.
They are 3 method of codification of materials:
a. Alphabetical: alphabets are used for codification of each grouping of cloth e.g. A, B, C…
b. Numerical: Numbers are used for codification of each grouping of materials e.g. 101, 102…
c. Alpha-numeric: both alphabets equally good equally numeric are used for codification of each grouping of cloth e.g. A-101, A-102…
Advantages of classification in addition to codification of materials:
i. It helps to maintain secrecy of materials.
ii. It facilitators to locate in addition to identified the materials.
iii. It avoids duplication of multiple names of materials.
iv. A coding scheme helps inward the maintenance of mechanized accounts.
Recording of materials received
After classification in addition to coding of materials, adjacent measuring on shop road is recording of materials received past times shop department. Following are the 2 scheme of cloth recording received past times store:
• Bin card
• Store ledger
Bin card
Bin bill of fare term used o symbolize the house or shelf or rack or pigeon-holed or fifty-fifty a large room where materials are stored in addition to the bill of fare attached to the bin or tag hung upwards in that location is known equally bin card. Bin bill of fare shows quantitative details of receipts, number in addition to residue of materials inward the bin. This bill of fare equally good shows the maximum level, minimum degree in addition to re-orders degree of the materials. It helps the storekeeper to command materials. Bin bill of fare is used past times the storekeeper to come about entirely quantities tape for all items of materials inward shop hollo upwards that, it does non tape the value of materials.
Store ledger
Store ledger is maintained past times costing department. This ledger shows the data for the pricing of materials issued in addition to the coin value at whatsoever fourth dimension of each items of store. Store ledger contains in addition to concern human relationship for every item of stores in addition to makes a tape of the receipts, number in addition to the balance, both inward quantity in addition to value. It contains the name, percentage number of the items, in addition to bin number.
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