Standard Store Operations

1.0 PURPOSE:

The purpose is to define the functions relating to all activities within the main Stores and to define a method of Stores Control.

2.0 SCOPE:

This procedure covers all the activities for Stores Operations at stations. 

3.0 DEFINITION:

• Material Receipt Intimation (MRI) via email
• Goods Receiving Note (GRN)
• Debit Note  (DN)
• Debit Transfer Note (DTN)
• Credit Note (CN)
• Delivery Challan (DC)
• Dispatch Note / Gate Pass (DhN / GP)
• Purchase Order (PO)
• Supply Chain (SC)
• HOD – Head of Department

4.0 RESPONSIBILITIES:

(4.1) Store In-charge shall be responsible for the compliance of this procedure and has the responsibility for managing all the Stores Operations / Functions under supervision of his immediate officer. 

(4.2) GM / DGM / HOD of respective section is responsible to ensure Inspection of the received material within 7 working days of Intimation received from Stores excluding exceptional cases. Material Receipt Intimation will be circulated through email within 2 working days to concerned user department, with the exception of large deliveries whose initial inspection could not be done by stores within 2 days.  Respective user department shall also sign the GRNs as mentioned in Specimen Signature Mandate attached.

5.0 PROCEDURE:

(5.1) MATERIAL RECEIPTS

All the material will be received in Store receiving area along with Delivery Challan. Store team will reconcile the quantities against PO and note any discrepancy (shortages, evident damages etc.) and intimate Supplier keeping in loop SC and relevant department for necessary action.

The received material shall be placed in designated ‘Inspection Area’ in store, tagged as “material under inspection”. A copy of the Delivery Challan shall be acknowledged and returned to the vendor stamped as ‘Received Subject to Inspection’. Following steps shall be followed for further action.

• Goods Received Document (GRN-103 Inspection Document) shall be generated subject to Purchase Order release and user dept. shall be intimated within 2 days. User dept should inspect the material within seven days for acceptance / rejection and sign the GRN 103 accordingly in stores to avoid any delays.
• In case above time line is not met and inspection delayed due to any reason, comments shall be recorded in SAP while releasing GRN 105. Email of correspondence shall be attached with hard copy of GRN 105 if available.
• User shall log the inspection remarks in GRN 103 (Hard copy).
• If the goods are according to their specifications, GRN-105 shall be generated within 2 Days to reflect new stock. All conforming / accepted materials shall be properly placed to their designated location.  
• If the goods are rejected GRN-124 (Rejection Document) shall be generated.  Rejected materials shall be appropriately placed to their designated ‘Rejected Material Area’. SC / suppliers shall be intimated for necessary action within 5 days of inspection.
• HOD will nominate the team member(s) who will be responsible for coordination and signing of all GRN’s within the section as per this SOP.
• Any shortage / excess receipt of materials shall be dealt as briefed under:
• If the material received is less than the PO Quantity, GRN-103 shall be generated for the quantity received and the balance / short quantity shall appear in the system as material receivable until remaining quantity received. 
• If the material received is in excess than the PO Quantity, GRN-103 shall be generated for the quantity ordered and the excess quantity shall be returned to supplier.

(5.2) MATERIAL ISSUANCE

The relevant stores staff shall issue stock material (in SAP inventory) through a valid SAP generated DN against following:

• Debit Note – Cost Center (201) – Revex Items
• Debit Note – WBS / Network (281) – Capex / Asset Item, raised against reservation no. 
• Debit Note through Material Reservation against Work Order – (261 and 261Q – for Revex and Capex items respectively.
• User will send the email request if items required from other plant inventory, Requesting Store will then generate the DTN accordingly and handover to users for necessary approval and submission. Approved DTN will be sent to Issuing Station for Stock transfer to requesting station. 
• User shall review / delete the old and unnecessary reservations on quarterly basis.
• The following information shall be checked from SAP before any item is handed over to the bearer:
• Cost Center / WBS 
• Approve DN as per signature mandate (attachment 1)
• Material code and description
• Work order / permit number (where applicable).
• On receipt of approved Debit Note, stores authorized personnel shall issue material to user considering following:
• FIFO rule for covering warranty issue, shelf life, deterioration or obsolescence of material. 

(5.3) MATERIAL RETURNS (UNUSED ISSUED MATERIAL) 

User will send the email request to return the issued items to store. Store will generate return note (202 / 282 / 262) accordingly and handover the hard copy to user for necessary approvals and submission to store.

(5.4) MATERIAL TRANSFER 

Material shall be transferred from plant to plant by using movement type 301 and from one material code to other by using 309. Movement type 302 and 310 will be used for reversal for these transfer postings.

For issuance of Capex items (Project Stock) not already transferred to WBS, first it should be transferred to Project WBS using desired movement type 412Q/415Q, and then issued through 261Q / 281.

(5.5) POSTING & RECORD

Authorized personnel shall maintain the record and also update / post in SAP accordingly.   

(5.6) SAP UNAVAILABILITY:

In case SAP is unavailable due to any reason, manual DN shall be used as an alternate during the period. As soon SAP is restored posting shall be done accordingly.

(5.7) PAYMENTS/CHEQUES HANDLING

Payment Voucher (Form 7) shall be initiated by FBA rep as soon the PO received, signed by end user HOD and plant head. 

All Advance and other payments (cheques) of Services & Materials POs shall be handled and released to supplier by FBA rep at plant.

For releasing Payments, FBA at plant shall check Invoices and other required documents and coordinate with Store regarding materials acceptance/completion of delivery.

FBA rep will also maintain the record of released and available cheques will circulate on Fortnightly basis.

(5.8) BIN LOCATION IN SAP

Material Bin location will be sent for update / uploading in SAP as and when required.

(5.9) DISPATCH OF GRNS

After complete approvals as per signature mandate, All GRNs with other necessary documents shall be dispatched to C&A/FBA (HO) for further processing of payments or settlement of payments

(5.10) FIXED ASSET TAGS

Fixed Asset Tags shall be issued against Asset Items (AUC / WBS Items) where necessary as per FBA SOP “SOP for TAGGING OF FIXED ASSETS”. User shall get the tag issued from Store with the material and consult with FBA site Rep in case of any doubt.

(5.11) SIGNATURE MANDATE:

01) Signature Mandate – DN / DTN / CN

For Debit Note, Credit Note and Depot Transfer Note, Approval shall be required from Head of Department. 

02) Signature Mandate – GRN 103

Below signature mandate shall be used for GRN. Inspection remarks should also be logged in either case accepted or rejected.

03) Signature Mandate – GRN

Below signature mandate shall be used for GRN.