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STOCK VERIFICATION

STOCK VERIFICATION. WHAT IS STOCK VERIFICATION ? Stock verification is the process by which an authorised person verifies the availability of the material in the depot vis-à-vis the balances as appearing in the books.

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STOCK VERIFICATION

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  1. STOCK VERIFICATION

  2. WHAT IS STOCK VERIFICATION ? • Stock verification is the process by which an authorised person verifies the availability of the material in the depot vis-à-vis the balances as appearing in the books. • The objective is to verify the correct accountal of all receipts and issues and investigate properly any discrepancies found during the verification

  3. The aim of stock verification is: • Quantitative verification i.e to ensure that the stores are available as per the records. • Qualitative verification with respect to • Verification of vouchers • Over hauling of the accounts • Comments on the state of stores • Deterioration of stock due to storage etc.

  4. WHO IS AUTHORISED TO CONDUCT THE STOCK VERIFICATION. • The stock verifier who works under an ISA and is a staff of the Accounts Office. All the Stock verification activities are controlled by an officer of Stores Account branch viz. SAO/IC • Any Departmental Officer- normally he should be other than the one in whose custody the stores are kept. This should be done with approval of COS.

  5. WHAT CAN BE VERIFIED. • The stock verifier has the mandate to verify all items that are present in the office. For medical department some examples are: • Stores in custody. • Imprest stores issued to the subordinate offices. • Tools and plants. • Consumable stores. • Machinery.

  6. Key points for sound, scientific and systematic verification are • Physical verification. • Review of maxima and minima with reference to average annual consumption • Review of special aspects like conditions of storage, proneness to pilferage, deterioration and other aspects of inventory control. • Analysis of history of over-stocks.

  7. WHAT AFTER VERIFICATION ? • After the verification is over the stock verifier shall: • Initial in the ledger and certify that verification has taken place and all the things have been found to be in order. • If any discrepancy is found then stock verification sheet will be prepared . • Contd….

  8. …...Contd • Any large discrepancy found as the result of stock verification should be investigated immediately (difference over 2% in quantity over the total transaction since the date? of last verification of items or Rs. 5000 in value which ever is hire. • The ward keeper should certify that all stores have been truly and correctly presented for verification. • The field diary of the SV should be counter signed by the ward keeper.

  9. Erroneous classification • Any wrong classification of the stores or unauthorised store or any items of stores which is surplus to requirement or for which their has be no demand for over year should be noted in the narrative report. • Admissible percentages of shrinkage. • Cotton - Row, spun, waste < 5% • Soap > 10% • If any more items are to be added then the same can be done so with the approval of GM.

  10. STOCK SHEET. • It is prepared after the verification of a group or a category of stores has been completed . The should be prepared daily. If after the complication of the verification fresh stores are seen then supplementary stock sheet should be prepared . • It is prepared in duplicate . One copy is sent to the account office and the other to the consult stores depot. • The disposal of stock sheets is the responsibility of the staff who was responsible for the custody of material at the time of stock verifications. • At the time of handing over the charge of an office the consigned officer should mentioned the pending stock sheets.

  11. Scrutiny of the stock sheets. • While verifying the explanations given by the executive the accounts department scrutinises them with respect to : • That the explanation represents facts. • That they are clear-intelligible and definite. • That the excesses under same items are not adjusted against the shortages of other items. • That there are no large differences in cases of items accounted in numbers. • That the staff responsible for the shortages are taken up for the irregularities.

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