Storage records and physical and perpetual inventory
Store records track every item in and out. A perpetual inventory updates stock with each receipt and issue; a physical inventory is an actual count of the shelves.
Storage records to be maintained
| Record | What it shows |
|---|---|
| Receiving register (daily receiving report) | Goods received each day: supplier, item, quantity, price, invoice number |
| Stores ledger (stock register) | One page per item: receipts, issues and balance |
| Bin card (stock card) | A card on the shelf or bin showing receipts, issues and balance of that item |
| Requisition (issue) slip | Signed request from the kitchen; the store issues only against it |
| Perpetual inventory record | Running balance of each item with minimum stock and reorder level |
| Physical inventory sheet | Actual count and value of every item at the end of the period |
| Spoilage (wastage) register | Items discarded, quantity and reason |
| Temperature log | Refrigerator and freezer readings, usually twice a day |
Physical vs perpetual inventory
The two figures are compared every month; any difference must be explained.
A perpetual inventory (bin) card: toor dal, in kg
| Date | Received | Issued | Balance |
|---|---|---|---|
| 1 Oct (opening) | - | - | 40 |
| 2 Oct | 100 | - | 140 |
| 3 Oct | - | 25 | 115 |
| 5 Oct | - | 30 | 85 |
| 7 Oct | - | 28 | 57 |
Cost of food used in a hostel for one month
A college hostel with 200 students had opening stock worth ₹60,000 on 1 March. Purchases in March cost ₹4,90,000. The physical inventory on 31 March showed closing stock worth ₹54,000. Find the cost of food used and the food cost per student per day.
- Cost of food used = opening stock + purchases − closing stock
- = ₹60,000 + ₹4,90,000 − ₹54,000 = ₹4,96,000
- Student-days = 200 students × 31 days = 6,200
- Food cost per student per day = ₹4,96,000 ÷ 6,200 = ₹80
Food used in March cost ₹4,96,000, which is ₹80 per student per day. The warden compares this with the budgeted amount per day.
Why stock control matters
- Prevents pilferage and theft, because every issue is recorded.
- Shows when to reorder: the reorder level is the stock at which a new order is placed so goods arrive before stock runs out.
- Avoids overstocking, which locks up money and risks spoilage.
- Finds slow-moving and expired items.
- Gives the cost of food used, needed for food cost control and budgeting.
A hospital stores in-charge who keeps bin cards and a monthly physical count spots a shortfall of milk powder or dal at once, and the cost per patient-day tells the dietitian whether the diet budget is on track.
2 marks: “What is a bin card?” A stock card kept on the shelf or bin of an item, recording each receipt, issue and the running balance of that item.
5 marks: “Differentiate between physical and perpetual inventory.” Physical: actual count at intervals, gives real stock and closing value, shows losses. Perpetual: running record of receipts and issues, balance known any time, helps reordering; compared monthly.
10 marks: “What records are maintained in a food store? Explain physical and perpetual inventory.” List and explain the records; draw a bin card; explain physical and perpetual inventory with differences; give the cost-of-food-used formula with an example.
Perpetual = paper keeps pace (running balance); Physical = put hands on it (actual count). Food used = Open + Buy − Close.