Stock Verification

1
Stock Verification

• Sources
• Accounts Code Vol 1
• Stores Code Vol 2
• Handouts of Sh R N Verma
• (FACAO (WS), WR)

2
Stock Verification

• Concept
• Need
• Aims
• Quantitative
• Qualitative

3
Agencies for stock verification

• (1) Accounts Department
• ASVs under ISAs
• (2) Executive Department
• Nominated

4
Frequency of stock verification

• As per Stores Code vol 2, Para 3202
• Category A items once in 6 months
• Category B items once in one year
• Category C items once in two years
• Annual schedule
• As prepared by ISA

5
Physical Verification of Stores

• Carried out by ASVs
• Completion report
• Supported by narrative report
• Excess/unnecessary procurement of stores
• FIFO
• Over-stocks/non-moved/nil items
• AAC

6
Stock Sheet

• Discrepancies between records and actuals
• The admissible percentage of shrinkages
• Prepared in duplicate
• Accounts copy
• Executive copy

7
Disposal of stock sheet

• Explanation by the executive
• Explanations represent facts
• Clear, intelligible and definite
• Excesses are not manipulated
• Responsibility is fixed
• accounts Notes

8
Conclusion

• Stock verification ensures -
• The proper, efficient and effective maintenance
  use of materials in the stock, and
• The accountability in the system.

9
Thank You