## Material Issue Procedure
General rules:
- Materials are issued only against a properly authorised requisition slip.
- Typically a department foreman is authorised to draw materials from stores.
- Materials should be issued on a FIFO basis to prevent deterioration of older stock.
### (i) Issue against a Material Requisition Note (MRN)
- What it is: the MRN is the voucher of authority for issuing materials for production or departmental use.
- Storekeeper's role: verify that the MRN is properly authorised and that the requested quantity matches the Bill of Materials (BoM).
- Documentation: after issuing, the storekeeper keeps one copy of the MRN for records.
- Format may vary by industry, MIS and accounting system.
### (ii) Transfer of Material (Material Transfer Note)
- When used: surplus material from one job that cannot be returned to stores due to being bulky, brittle or heavy.
- Usage rule: transferred to another job only if appropriate; direct job-to-job transfers are generally discouraged.
- Document: a Material Transfer Note is prepared in duplicate —
- One copy to the Cost Accounting Department to update cost ledgers.
- No store entry is needed, so the store keeps no copy.
### (iii) Return of Material (Shop Credit Note / Stores Debit Note)
- Why it happens: material issued in excess due to estimation errors or technical difficulties.
- Importance: surplus must be returned promptly to prevent misuse or cost overstatement.
- Document: a Shop Credit Note (or Stores Debit Note), prepared in triplicate by the returning department.
- Purpose: ensures safe custody of surplus and accurate cost allocation to the correct job.