Definition in Detail
A store requisition, also referred to as a materials requisition, is a formal request document generated by departments or employees within an organization to obtain raw materials, supplies, or goods from the internal store or warehouse. The document outlines specific items, quantities needed, and often includes the department or project for which the materials are needed. It ensures a systematic and traceable way to account for the movement of inventory within an organization.
Store requisitions play a critical role in inventory management by ensuring that materials are available when needed, preventing stockouts, and keeping accurate records of inventory usage. They are essential in various sectors, including manufacturing, retail, construction, and more, to manage internal supply chains efficiently.
Examples
- Manufacturing Plant: An assembly line worker submits a store requisition for additional bolts and screws required to complete the production of a batch of machinery.
- Construction Company: A project manager requests cement, sand, and bricks from the company’s central warehouse to continue construction work on a building site.
- Educational Institution: The chemistry department submits a materials requisition to the central store for laboratory chemicals and glassware needed for upcoming experiments and classes.
Frequently Asked Questions
What information is typically included in a store requisition form? A store requisition form generally includes the following details:
- Name of the requesting department or individual
- Date of the request
- Details of items needed (item name, item code if applicable)
- Required quantities
- Purpose of requisition
- Required delivery date
- Authorization or approval signature
How does a store requisition differ from a purchase order? A store requisition is an internal document used to request supplies from within the organization’s own store or warehouse, whereas a purchase order is a document sent to external suppliers to procure goods or services from outside the organization.
What is the importance of authorizing a store requisition? Authorization ensures that the request is legitimate, necessary, and approved by someone in a supervisory position, thereby preventing misuse of resources and controlling inventory.
How can store requisitions help in inventory management? Store requisitions provide a record of items requested and issued, helping to track inventory usage, detect trends in consumption, and forecast future inventory needs accurately.
What steps are involved in processing a store requisition? Processing typically involves:
- Submission of the requisition form by the user department.
- Review and approval by authorized personnel.
- Checking item availability in the store or warehouse.
- Issuance and delivery of the requested items.
- Updating inventory records.
Related Terms with Definitions
- Inventory Management: The process of ordering, storing, using, and selling a company’s inventory, including raw materials, components, and finished products.
- Materials Requisition: A document similar to a store requisition used specifically for requesting raw materials for manufacturing or production purposes.
- Supply Chain Management: The management of the flow of goods and services, including all processes that transform raw materials into final products.
- Procurement: The process of finding, acquiring, and buying goods, services, or works from an external source.
Online References to Online Resources
- The Importance of Inventory Management in Manufacturing
- Efficient Warehouse Management
- Supply Chain Management: Introduction and Overview
- Materials Requisition Process
Suggested Books for Further Studies
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“Essentials of Inventory Management” by Max Muller Provides insights into the principles and practices of efficient inventory management.
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“Operations Management: Processes and Supply Chains” by Lee J. Krajewski, Manoj K. Malhotra, and Larry P. Ritzman Covers various aspects of supply chain and operations management, including inventory management techniques.
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“Supply Chain Management: Strategy, Planning, and Operation” by Sunil Chopra A comprehensive resource on all aspects of supply chain management, from strategy to implementation.
Accounting Basics: “Store Requisition” Fundamentals Quiz
Thank you for exploring the concept of store requisitions through our detailed article and engaging quiz! Understanding fundamental accounting terms is crucial for effective inventory and supply chain management. Happy learning!
