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Materials
required for manufacturing process to run are received from various sources
from outside which are verified and accounted for in the
Stores.
Different modes of receipt :
Materials required are received from various
sources through various modes of transportation. The major
mode of transportation are
Rail and Road. Other than this the materials are received
through air, sea , courier, registered post or by hand also
(Door delivery).
By Rail:
The bulky material required in huge quantity like Raw
materials are received by Rail in rake load. A rake is the
multiple number of wagons received together. In such cases
the whole rake is received inside the plants and the
wagons are returned back to railways after unloading. When
the quantity received is less than a rake load, materials
are received in wagons which are transferred inside the
plant by the Railways and empty wagons are returned to
railways after unloading. The consignments received in rake
load or wagon load are accompanied by the carrier’s(
Railways) document called Railway receipt (RR). The wagons
/ rakes are to be unloaded within the stipulated time
limit given by the Railways known as Free Time. For any
delay in releasing the wagons beyond the free time
Railways charge extra amount based on the extra time the
wagons are held, known as “ Demurrage”.
Material less than a wagon load are received in smaller
consignments also known as
“Smalls”. The railway documents accompanying such small
consignment is also know as Parcel Way Bill (PWB). These
small consignments/ Parcels are received from the railways
from their godown within the stipulated time. For any
delay in collection of such material from Railway godown
Railways charge extra amount known as ‘warfage’.
By Road:
The materials are also received through the Road
transportation by trucks. The
material received by truck are accompanied by a
transporters document know as consignment note. Depending
on the terms of the Purchase Orders, the material by road
are received in the Plant Stores or in the transporters
local godown in which case Stores collects the material
from the transportation godown.
The materials sourced from the foreign countries are
received by Ship or through Air Carrier up to the nearest
Sea port/ Airport respectively which is further
transported to Plants by Road.
Verification of Consignments :
When the materials are received by Rail the wagons
received are verified for any pilferage / shortage and
also weighed for ascertaining the receipt of correct
quantity. Any discrepancy in the quantity found or the
damages observed is recorded on the RR / PWB. A Railway
claim is lodged against this discrepancy. This Railway
claims become a prerequisite for lodging insurance claim
with underwriters.
The material received through trucks are verified at the
point of receipt for the correctness against our Purchase
order and the suppliers challan and outward damages or
shortages in quantity if any. If any shortage or outward
damage in the received material/consignment is observed
the remarks is made on the transporters document and a
carrier claim is lodged.
Acknowledgement for the receipt of consignment/material
was given on the transporters document like consignment
note or on the delivery challan of the firm.
Receipt, Accounting & Documentation :
Once the consignments/materials are received in the Stores
from the transporters/railways, actual quantity received &
the condition of the material received are further checked
in detail after unpacking the packages and matching the
quantities with the suppliers delivery challan and the
Purchase orders. Weighment is resorted to wherever the
weight is to be ascertained.
The correctness/completeness and the quality of material
received is checked as per the terms of Purchase Orders.
Then the document for receipt accounting is prepared which
is known as “Goods receipt note (GRN)” or “Stores Receipt
Voucher (SRV)”. GRN/ SRV is the document through which the
received materials are taken on charge in the plant, also
the document which communicates the acceptance/rejection
of the material supplied and a document enabling the
payment to the supplier against the supply.
Direct delivery to users or central storages :
The materials against the various Purchase Orders are
generally received centrally by stores and stored after
verification and accounting. However in case of certain
items where there is no central facility of storage in the
Stores the material is directly transferred to the storage
facility available with the user departments. After
ascertaining the quantity and the quality of such
materials received at the user departments and their
certification the material receipt is accounted for by
raising GRN/SRV.
Excise documentation :
Against most of the materials we procure from the
suppliers we reimburse excise
duty/Central VAT (CenVAT) and State VAT (Value added tax)
paid by the suppliers. The corresponding CenVAT gatepass
VAT document is sent by the supplier along with the
materials. For the materials used in the direct production
or enabling production, we get CenVAT/ VAT credit benefit
from the concerned Government. For claiming this CenVAT/
VAT benefit from the Govt. Authority the CenVat document
(Excise Gate pass) and Vat documents received along with
the consignment are required. Therefore the receipt of
these documents are particularly ensured and transferred
to Accounts in time to claim the CenVAT/ VAT credit. In
case of not reciving these documents the same is recorded
on the suppliers challan & the supplier is not reimbursed
these charges as per Purchase Order stipulations.
Lead time of Receipt accounting :
The material received from various sources are
verified and accounted |
