All about Inventory Management

Sr. No.

Particulars

1

After receiving material in the stores whether invoice is supported with inspection report and submitted to accounts dept?

2

Is proper authorization and verification of the material inspection report done by the purchase manager as well as the higher authority?

3

Is stock taking and supervision of material received done on periodic basis?

4

Is excess/shortage of material reported to purchase and production dept?

5

Is damaged stock recorded and reported to the concerned authority?

6

Whether ABC analysis or FSN analysis done?

7

Is stores ledger daily updated?

8

Whether material is issued in proper format from stores?

9

Whether material transfer note is prepared when material is transferred from one job to another? How many copies are prepared?

10

Whether periodically stores ledger maintained with costing dept and bin card maintained at stores verified? What is the frequency of verification?

11

What is company policy regarding when to order and how much to order?

12

Check the Goods Received Notes (GRN) to ensure that the GRN are properly filled in. Ensure
that all the columns of the GRN have been completely filled in.

13

Is there an authorized person to carry out inspection of goods received? Does he enter remark in GRN?

14

Does he enter date of inspection on GRN?

15

Is GRN serially numbered?

16

Is GRN signed by authorized person?

17

Is there an action plan to dispose off non-moving inventory?

18

Has management taken the appropriate steps to safeguard goods against risk of loss by theft (e.g., goods kept in locked buildings, rooms, access to which is granted only to authorized personnel)?

19

Does management monitor and approve the write-offs of obsolete and inactive inventories?

20

 Are issuing and billing procedures designed and correlated so as to ensure the billing of all items?

21

Is adequate insurance coverage provided?

22

Are discrepancies between physical counts and perpetual records investigated and resolved?

23

Is there segregation of duties in the stock control system for ordering items, receiving items, issuing stock and stocktaking?

24

Is staff at stores well trained for the job?

25

Are stock levels maintained?

26

Is entry register maintained by guard?

27

Is goods inward note and register maintained at stores?

28

Is there a proper authorisation for the following :

1. requisition from stores

2. All material receipt notes

3. Change in stock levels

29

Is internal requisition properly mentions technical specification and quantity of material to be procured and also the supply date?

30

Are all the materials received in stores are against purchase order only unless otherwise authorised?

31

Are material kept separate till inspection?

32

Are rejected material kept separately from accepted stock?

33

Is there a control so that no material is issued till the time of acceptance of material?

34

Are stock records updated before storing the material?

35

Are materials stored as per storage plan?

36

Are goods unloaded only after checking supporting invoices and delivery challan?

37

Is quality clearance obtained for unloaded material?

38

Are bin cards updated with all receipts and issues accurately?

39

Can issues be tracked to the request from various dept?

40

Are receipt and issue of material immediately updated in system?

41

When are good rejected entered in books?

42

Is periodical review made of items that are out of stock and in excess?

43

Is periodical review made of pending requisitions?

44

Is there a reporting system for written off/discarded items?

45

Is training provided to stores staff to track and safeguard inventory?

46

Is list of authorized signatory for requisition maintained at stores?

47

On receipt of requisition does storekeeper match signature on requisition with the authorized signatory list maintained at stores?

48

Whether 100% physical count taken for all items during a year?

49

Is there a defined timeline for recording transaction in a system?