MAINTAINING WAREHOUSE INVENTORY LEDGERS - Food Resources Manual

Warehouse inventory ledgers are required for each individual shipment offood which arrives in country (a shipment number usually is assigned by thecountry office) and for each type of food. All transactions related to thereceipt, dispatch or loss of food are recorded in these ledgers.

Source Documents for Ledgers

The source documents that support entries to the ledger are:

  • Discharge (ex-tackle) independent survey reports - See Port.
  • Delivery reports of independent surveyors - See Port.
  • Waybills - See Food Receipt and Dispatch.
  • Loss and Adjustment Reports - See Losses and Claims.

Warehouse Inventory Ledger

These forms set out the minimum information required for recording foodtransactions. Country offices may include additional information, ifnecessary.

WAREHOUSE INVENTORY LEDGER

Warehouse Inventory Ledger - Unfit Food

Guidelines for Preparing Warehouse Inventory LedgersCreating Ledgers

  • Maintain two types of warehouse inventory ledgers--one for good food (includes original bags orcontainers and repackaged) and one for food suspected or declared to be unfit for humanconsumption. Maintaining two ledgers permits easier reconciliations among warehouse inventoryledgers, commodity financial ledgers and physical counts.
  • Maintain ledgers by shipment number, donor and food type. For instance, if wheat from threeseparate shipments is stored in the warehouse, maintain three separate ledgers even though thewheat comes from the same donor.

Recording - Generally

  • Record entries in whole units. If some bags are only partially filled, record the weight. If there are1 ½ bags with a standard bag weight of 50 kilos, record 1 bag and 25 kilos.
  • Update ledgers daily so that balances are available and losses will be detected.
  • Close ledgers at the end of each month. Country offices and counterparts should coordinate closureof ledgers with commodity financial accountants.
  • Carry forward the opening balance from the previous month's ending balance. If there is no endingbalance for the previous month, the opening balance is zero.

Recording Receipts and Dispatches in Port Ledgers

  • Enter receipts in the Receipts column of the ledger from the quantity listed on B/L. B/Ls list thenumber of units shipped. If food is shipped in bulk, divide the total weight of the food by the unitweight of the bags accompanying the bulk shipment to get number of bags.
  • Add up totals of food received short or in damaged packages (includes unfit) during discharge fromships at port and enter totals in the Pending column of the ledger. The independent survey report isthe source document for this marine loss information.
  • Enter units and weights in the Dispatch column of the ledger from the “Total Units” column of the“Dispatch Information” section of the waybill. Use the independent surveyor’s delivery survey,when available, as additional supporting documentation.

Recording Receipts and Dispatches in In -country Warehouses

  • For arrivals in warehouses, record in the Receipts column of the ledger the units and weight listedin the Total Dispatch line of the waybill.
  • Enter units and weight of damaged packages in the Pending column of the ledger.
  • For dispatches from warehouses, enter units and weights in the Dispatch column of the ledger fromthe “Total Units” column of the “Dispatch Information” section of the waybill.
  • Enter returns of any dispatches to warehouses as a negative number in the Dispatch column.

Loss and Adjustment Reporting

Fill out Loss and Adjustment Reports whenever a loss or excess of food is discovered. Generally,the best method is to reconstitute the food into new bags or containers first, then describe the natureand extent of damages.

Ports

  • Fill out a Loss and Adjustment Report for all marine losses at port. The independent survey reportis the support document and it should be referenced or attached to the Loss and Adjustment Report.
  • Fill out a Loss and Adjustment Report for losses occurring between the time food is discharged froma ship, placed in port warehouses and then dispatched from the port warehouse to an in-countrywarehouse. The discharge (ex-tackle) and delivery survey reports should be used as supportingdocuments and referenced or attached to the Loss and Adjustment Reports.

In-country warehouses

  • Fill out Loss and Adjustment Reports for transit losses when food is dispatched between warehousesand/or distribution sites, enter the amount of loss in the Pending column of ledger and submit thereport for approval.
  • Fill out Loss and Adjustment Reports for losses discovered in warehouses, enter the amount of lossin the Pending column of ledger and submit the report for approval.
  • Fill out Loss and Adjustment Reports for any food declared unfit for human consumption by apublic health officer or other authorized officials, enter the amount of loss in the Pending column ofledger and submit the report for approval.
  • Submit Loss and Adjustment Reports to a person authorized by the CARE country office or counterpart to approve these reports. Once approved, copies of reports should be returned to the warehouse manager or storekeeper who prepared the report.
  • Use a negative entry to remove losses from the Pending column of the ledger and enter the amountin the Loss column of the ledger.
  • Remove the loss from the Pending column, upon approval, and enter the amount in the Receiptscolumn of the ledger for unfit food.
  • Balances in the Pending column represent amounts for which authorized Loss and Adjustment Reports have not been approved.

Warehouse Inventory Reporting Period

Warehouse managers or storekeepers must take physical inventory and prepare Commodity Status Reports at least once a month. In order to assure consistency in commodity reporting, follow the same monthly reporting periods used for financial accounting.

The fiscal year ending 30 June contains 12 reporting periods plus one end of year adjustment period. The twelve reporting periods end on the 25th of each month for country offices, except for the month of June, when it ends on the 30th. The country director sets the end date of the reporting period for sub offices. When setting this date, allow sufficient time for the transmittal of data to the principal country office. For example, if a country office has sub offices outside the capital where the principal office is located,the country director determines that the sub offices will determine their commodity inventory balances as of the 20th of each month. The data is submitted to the principal office in time for the close of the reporting period on the 25th.

Recording Transactions - Ledger Format And Examples

This section provides the basic warehouse inventory ledger format and examples of how to enter transactions. It begins with the arrival of food at the port and continues through dispatches to distribution sites,including specific transactions, summary tables which analyze receipt,dispatch and loss/damage information, and actual entries into warehouseinventory ledgers. The summary tables set out in this section are forillustrative purposes only.

While the examples below show transactions taking place nearly all at the same time, there often will be delays in making entries in ledgers because of distances and slow communications.

  1. Transactions at the Port
  2. 1. Discharge from ship

    • 27 October -- A ship with Bill of Lading #576 carrying 6,000 bags of CIDA wheat arrives atport. Shipment #3054 is assigned to the shipment by the CARE country office.
    • A total of 5,900 bags are discharged from the ship, including 30 torn and leaking bags and fivebags which are stained and appear unfit for human consumption.
    • The 30 torn and leaking bags are reconstituted into 25 bags of food.
    • 28 October -- Four of the five damaged bags are declared unfit for human consumption by anofficial of the Health Ministry. One bag is declared fit for human consumption.
    • Loss and Adjustment Report #14 is prepared for the reconstituted and unfit food and submitted to a designated manager for approval.
    • 29 October -- The sub office administrator authorizes Loss and Adjustment Report #14,documenting marine losses of 109 bags (100 short, five lost after reconstitution and four unfit).

    Dispatch from the port warehouse

    • 29 October -- 1,000 bags are dispatched to warehouse #1 via Waybill # 850.
    • 29 October --The four bags of unfit food are sold to a fertilizer company and dispatched from port via Waybill # 851.
    • 30 October -- 1,000 bags are dispatched to warehouse #1 via Waybill #852.
    • 31 October -- 1,000 bags are dispatched to warehouse #1 via Waybill #853.
    • 1 November -- 1,000 bags are dispatched to warehouse #1 via Waybill #854.
    • 2 November -- 1,000 bags are dispatched to warehouse #1 via Waybill #855.
    • 3 November -- 850 bags are dispatched to warehouse #1 via Waybill #856.
    • 3 November -- The port informs CARE that no bags remain from this shipment. The warehouse inventory ledger shows a balance of 41 bags. Loss and Adjustment Report #15 is prepared documenting the port loss of 41 bags.
    • 4 November -- The sub-office administrator authorizes the report.
    • 20 November -- The port informs CARE that an additional 30 bags from this shipment werediscovered at port. This amount is documented on Loss and Adjustment Report #16 and authorized by the sub office administrator.
    • Page 10-12 CARE Food Resources Manual

    SUMMARY TABLES - PORT

    If the warehouse inventory ledger cannot be reconciled with the discharge surveyreport, it may indicate:

    • The information on the survey report has been updated and this information hasnot been reflected on a Loss and Adjustment Report.
    • Loss and Adjustment Reports for marine losses have not been received.
    • Information on the Loss and Adjustment Reports does not match information onthe survey report.

    Summary Table - Dispatch Information From Port Warehouse

  3. Transactions at an In-Country Warehouse
    • 29 October -- The truck carrying waybill #850 arrives at the warehouse from the port. Recallthat the dispatch quantity on the waybill was 1,000 bags and the shipment number is 3054. Atotal of 975 bags are unloaded from the truck. Five bags are torn and leaking, and two bags arestained and appear to be unfit for human consumption.
    • The five torn and leaking bags are reconstituted into 4 ½ bags. A public health official declaresthe two stained bags to be unfit for human consumption. The reconstituted and unfit bags aswell as the bags delivered short are documented on Loss and Adjustment Report #100.
    • 30 October -- The sub office administrator authorizes Loss and Adjustment Report #100 documenting the internal transit losses of 27 bags and 25 kilos.
    • 30 October -- The truck carrying Waybill #852 arrives at the warehouse and unloads 1,000 bags.
    • 31 October -- 1,000 bags of wheat are loaned to another organization and dispatched from thewarehouse on Waybill #1498. The loan was approved by CIDA, the donor of the food.
    • 31 October -- The truck carrying Waybill #853 arrives at the warehouse and unloads 1,010 bags,of which five are torn and leaking, three are moldy and ten are underweight by five kilos each.
    • The five torn and leaking bags are reconstituted into four. The ten underweight bags are reconstituted into nine. A public health official declares that three other stained bags are unfit for human consumption. The reconstituted and unfit bags as well as the ten excess bags are documented on Loss and Adjustment Report #101.
    • 31 October -- The sub office administrator authorizes the Loss and Adjustment Reportdocumenting the transit loss of five bags and the excess receipt of ten bags.
    • 1 November -- The truck carrying Waybill #854 arrives at the warehouse and unloads 990 bags.Loss and Adjustment Report #102 is prepared documenting the transit loss of ten bags, and thesub-office administrator authorizes removal of the loss from inventory.
    • 2 November -- The truck carrying Waybill #855 arrives at the warehouse and unloads 1,000bags.
    • 3 November -- The truck carrying Waybill #856 arrives at the warehouse and unloads 850 bags.
    • 4 November -- 200 bags are dispatched from the warehouse to a Counterpart A's distribution center via Waybill #1499 for PN20. This dispatch is based on a distribution plan prepared by the project managers.
    • 5 November -- Two stained bags are returned to the warehouse. These were part of a dispatch of200 bags to Counterpart B via Waybill #1500 for PN20. The dispatch was also part of the above distribution plan. The person authorized to accept the dispatch for Counterpart B noted on the Waybill that she did not accept the two bags because they were stained and appeared to be unfit for human consumption. Loss and Adjustment Report #103 is prepared. On the same day, a public health official declares the two stained bags returned to the warehouse to be unfit forhuman consumption, and the sub office administrator authorizes the Loss and AdjustmentReport.
    • 5 November -- Five stained bags are discovered in the stack of the shipment in the warehouse,Loss and Adjustment Report #104 is prepared, the public health official declares them to be unfit and the sub office administrator authorizes the report.
    • 6 November -- The organization that borrowed 1,000 bags of wheat delivers the repayment wheat to the warehouse using their Waybill #2588.
    • November -- The warehouse storekeeper discovers a stack of wheat from shipment #3054 to be infested with insects. A professional exterminator fumigates the stack with phosphine. Notethat the stack which contains the food repaid from a loan was not infested and thus was notfumigated.
    • 10 November -- Seven bags of unfit wheat are sold for animal feed and dispatched from thewarehouse via Waybill #1501.

Port Warehouse Inventory Ledger

Port Warehouse Inventory Ledger - Unfit Food

The above table analyzes each waybill to show receipts, dispatches and how damagedfood is accounted for. The information in rows 1 - 6 is from the Dispatch Information section of each Waybill. Information in Rows 7 - 14 is from the Receipt Information section of the Waybill which would be completed by the Warehouse #1 manager or storekeeper.

Summary Table - Waybill Information

Summary Table - Waybill Dispatch Information

Warehouse Inventory Ledger

Warehouse Inventory Ledger - Unfit Food


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