Booking of stock consumables

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Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2015 I had s query when t book consumables stock in stock register in government offices when actual delivery has been received or when bill is raised or when payment has been done

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2015 Plz clear it

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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18 July 2024 In government offices or any organization following accrual basis of accounting, including when to book consumables in the stock register, typically depends on when the goods or services are received and when the liability to pay arises. Here’s a breakdown of the process:

### Booking Consumables in Stock Register:

1. **Receipt of Goods:**
- **Date of Receipt:** Consumables are generally recorded in the stock register when they are physically received by the office.
- **Acknowledgment:** A goods receipt note (GRN) is often prepared upon receipt, detailing the quantity, description, and condition of the goods received.

2. **Invoice/Bill Raised:**
- **Date of Invoice:** If the consumables are purchased, the supplier issues an invoice or bill upon delivery.
- **Recording in Books:** The invoice date may be used to record the liability and to book the cost of the consumables in the financial records.

3. **Payment for Consumables:**
- **Date of Payment:** Payment for the consumables is recorded when it is actually made to the supplier.
- **Booking in Accounts:** The payment date is relevant for accounting purposes to recognize the expenditure and to manage cash flow.

### Principles Applied:

- **Accrual Basis:** Government offices typically follow accrual accounting principles where transactions are recorded when they occur, regardless of when cash is exchanged.
- **Matching Principle:** Expenses (cost of consumables) are recognized in the period they relate to, irrespective of the timing of payment.
- **Stock Register:** The stock register reflects the physical quantities of consumables on hand, which should match the quantities recorded in the accounting system.

### Conclusion:

To summarize, in government offices:
- **Stock Register:** Consumables are booked upon physical receipt, recorded in the stock register to maintain accurate inventory records.
- **Accounts:** The liability (cost) for consumables is recorded based on the invoice/bill date, reflecting the expense in the financial statements.
- **Payment:** Payment date is relevant for cash management but does not affect the timing of expense recognition.

Adhering to these practices ensures transparency, accuracy in financial reporting, and compliance with accounting standards applicable to government entities. If unsure, consulting with a professional accountant or referring to specific governmental accounting guidelines can provide further clarity.

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