Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Elaboration for “Issuing of Inventory”
- This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
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- September 17, 2020 at 12:17 pm #585922
“Issuing of inventory
When the production department requests materials for production, they will send a material
requisition note to the stores.
The stores will issue the material and update the inventory records.
Any unused material will be returned to the stores together with a materials returned note and inventory records will be updated.”Hi sir, please elaborate on the above.
Is it talking about factories here manufacturing goods ?
Are the stores the factories where the material is being created out of the machinery ?I thought the Production Department would be within the factories creating the products from the machinery, instead of requesting the stores to create them.
Also, please if you could rephrase the process explained above in a more elaborate and simpler manner.
Thanks
September 17, 2020 at 1:29 pm #585932The production department is manufacturing goods. In order to make the goods they will need raw materials (e.g. a company making desks will need to buy wood in order to be able to make the desks).
When raw materials are ordered they will be held in stores until the production department requests them.September 17, 2020 at 4:55 pm #585952Thankyou !
September 18, 2020 at 8:42 am #586000You are welcome 🙂
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