Topic 6

STORES RECORDING

05/21/2025 By Orio, G CPSP (T) 1

Contents/ Related Tasks
 Meaning of Stores recording
 Types of stores records systems
(manual, computerized,).
 Advantages and disadvantages of
each types of stores recording
system.
 Importance of stock records.
 Factors to consider when selecting
type of stores recording systems.

05/21/2025 By Orio, G CPSP (T) 2

 STOCK RECORDS
 Stock records: Refers to formal set
of clerical records that contains
information about stock quantity held
within the store system.

 It is regarded as the best means of

controlling stock items by showing the
stock positions, movements and
locations. This information is useful in
determining when to order, how much
to order and what to keep in stock.
05/21/2025 By Orio, G CPSP (T) 3
 STOCK RECORDING
SYSTEM
 Most of organizations prefer to
opt a type of recording system(or
both) that favors their business
situation in which they are to be
used in stores operations.
 The commonly stock recording
system used by any organization
are:-
1) Manual recording system.
2) Computerized/ Mechanized
05/21/2025 By Orio, G CPSP (T) 4
 Types of Stores recording
Systems
1. MANUAL RECORDING SYSTEM
Is the system where stores recording,
posting of entries are done by hand-
using physical/ manual documents.
2. COMPUTERIZED RECORDING SYSTEM
This is the recording system where
there is an application of a recording
device such as machines, computers
or any other aid to facilitate faster
recording, particularly when there is
high volume of work and such work is
complex.
05/21/2025 By Orio, G CPSP (T) 5
Stores recording
Systems
2. Computerized system cont……
Under computerized system, the data
processing of this system is
electronically processed. In this system
all codes and vocabulary number are
coded in bar codes, the bar code reader
will be the input device and output
device to read and translates
information from the bar codes or thick
magnetic line drawn on the item to
represent various information of the
item. 05/21/2025 By Orio, G CPSP (T) 6
Advantages of Manual
recording system
• Enable posting to be done without
any difficult.
• Cheap where there are few
transactions to be handled (small
range of stock).
• Writing of stock is very flexible
and does not require any special
designed cards or equipment to
record transactions.
05/21/2025 By Orio, G CPSP (T) 7
Disadvantages of Manual
recording system
• This system is unsuitable for large
range of stock.
• Very tedious in calculations for stock
level such as reorder level, maximum
and minimum levels.
• Inaccuracy in recording will inevitably
occur from human weakness causing
wrong balance
• Wastage of time due to much time
spent in recording entries(posting
entries).
05/21/2025 By Orio, G CPSP (T) 8
Advantages of
Computerized/ Mechanized
recording system.
High accuracy and high speed in
posting/recording.
Low clerical cost due to low labor
power.
Save time due to high speed in
analyzing and data computation.
 It is suitable for large volume of
work

05/21/2025 By Orio, G CPSP (T) 9

Disadvantages of
Computerized/ Mechanized
recording system.
 High costs of initial
purchase equipment and software
installation plus depreciation,
maintenance and repair of
computers and its accessories.
 Needs skilled personnel to run the
system.
 Availability of power and internet.
 Virus attack and system hackers.
05/21/2025 By Orio, G CPSP (T) 10
Factors/ criteria to consider
in selecting type of
recording system.
a) Volume of work to be recorded.
b) Analyze which system is more
advantageous to the firm over other
system.
c) The extent and nature of accuracy
information required.
d) Comparison of costs involved between
the two systems and the value of
information to the organization.
e) Flexibility of the system in recording in
basic documents.
05/21/2025 By Orio, G CPSP (T) 11
Importance of Stock
Records
 It helps to show the current
amount of stock at any time
within the store without it being
necessary for the stock to be
counted physically.
 Stock records assist in
identification of all materials in
a store, i.e. stores code index.
 Records assist in stock control
when determining how much to
order and when to order, by
simply looking on the stock
levels, movements etc.
05/21/2025 By Orio, G CPSP (T) 12
 Importance of Stock
Records
 Supply information for stock taking and
assist in physical stock taking by
comparing physical balance and balance
per records.

 Provide a method of informing stores staff

of the location of the items in the
storehouse. i.e. stock location index.

 Records act as a price list of all issues or

items in stock during valuation i.e. the
stock records price could be used as a
base for computing the value either
issues or balance stock.
05/21/2025 By Orio, G CPSP (T) 13
 END OF TOPIC

Thanks for Listening

05/21/2025 By Orio, G CPSP (T) 14