Inventory accounting refers to the accounting records and systems used for the ordering, receipt, issuing, and valuation of materials bought by an organization for stock. It includes the recording of entries on bin cards and in the stock ledger as well as the procedures adopted to carry out effective stocktaking.
A material transfer note is a form used to record the transfer of materials from one accounting code to another. It is a prime document that contains essential details including the description of the material, commodity code, job number, accounting codes to be credited and debited, and the value of the material transferred.
