What are the meaning of Material (Requisitions, Return Note, Abstract, Transfer Note) and Bills Of Material?//openbook247


What are the meaning of Material (Requisitions, Return Note, Abstract, Transfer Note) & Bills Of Material ?

In this  article, we learn and known about  Material Requisition Note, Material Return Note, Material Abstract Note, Material Transfer Note and Bill of Material. 

Material Requisitions:

It is a document which contains a formal request by the users department to the storekeeper to issue material. The requisition must be signed by the competent authority by the user department. On the authority of material requisition, the storekeeper issues material, No material can be issued from the store without such requisition.

In other words, the document which provides authority to the storekeeper to issue material is called material requisition.

It is prepared by Production requirement in duplicate. 

Material Requisitions contains the following requisitions:

  • Name of the Department.
  • Job for which material is required 
  • Detailed description of the material required with its code number.
  • Quantity of material required.
  • Signature if the authorised affair.

It is prepared in triplicate. The storekeeper signs all the copies and returns one copy to the department requisitioning the material. The second copy is retained by the stores department and the third copy is sent to the costing department so that they will debit the job for which material was issued with the value of such material. 

2.Material Return Note:

Material Return Note is otherwise known as stores debit note or shop credit note. It is a document which contains the details of material returned from the department to the store. Such return of material arises due to two reasons-

i. Wrong estimation of production requirements.

ii. Sometimes bulk materials are issued to the department and the department due to convenience in handling and the department cuts the material according to its exact requirement from the bulk and returns the balance material to the store.

The department preparing material returned Note will make three copies of it and will send all the three copies along with the materials returned to the storekeeper. The storekeeper will sign all the 3 copies and return one copy out of it to the department returning the material. Another copy will be sent to the costing department so that the returning department will get due credit for such return. The third copy will be kept by the storekeeper himself for future reference.

In other words, the document which records the total quantity and amount of material returned to store is called material return note.

3. Material Abstract:

Material Abstract is otherwise known as material issue analysis sheet. It is a summary statement of material indent, material returns and transfer notes during a period. It is a prepared period like weekly, monthly or quarterly by the storekeeper. The material abstract serves the following purposes:-

i. It gives the details of materials issued, returned, transferred or used during a particular period.

ii. It gives the details of materials used by different jobs. So, the concerned jobs are debited with the cost of the material.

iii. It is useful in making entries in store control accounts.

iv. Total issues recorded in the material abstract can be compared with the total issue recorded in the store’s ledger and bin card. This strengthens the material control system.

4. Material Transfer Note:

Generally, transfer of surplus material from one department to the other is not allowed because of control purposes. However sometimes the transfer of one material from department to the other for speedy movement of material and economy in material handling cost if the transferrar department and transferee department are closely related.

In the above case a document is created known as Material transfer Note. It is a document which contains details of material transferred. It is prepared by transferring departments in 3 copies. The material so transferred along with the 3 copies are sent by transferring department to transferee department. The transferee departments sign all the 3 copies.1 copy is returned to the transfering department, another copy is sent to the costing department and the third copy is retained with the transferee department.

In other words, the document which is prepair when materials are transferred from one store to another store or from one face to another face is called material transfer Note. It is prepared by the department where material is an excess quantity.

5. Bills of Material:

A bill of materials is a document prepared by the production control department which contains the compute list of materials required for a particular job/ contract/ order/ process. It is generally prepared for non standardised jobs. Because in the case of those jobs their material requirement differs from job to job.

In other words, the document which records detail of material required to produce a product is called Bill of material.

It is otherwise known as specification of material.

It serves the purpose of material requisition. It is prepared in triplicate;

i. One copy is returned by the storekeeper to the requisitioning department after signing it.

ii. 2nd copy is retained by the storekeeper in his department and 

iii. The 3rd copy is sent to the costing department. 

Advantages of Bill of material:

i. Serves as an authorised store requisition.

ii. It helps to determine the cost of a particular job in advance.

iii. It helps to purchase an adequate quantity of material.

iv. It helps to exercise effective control of material cost.


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