114 Material^ and Their Handling 



pcricnce is that a well kept stores ledger system is 

 reliable and it has the great advantage of giving 

 information regarding stores balances at any time 

 it is needed. 



From the inventory point of view it is just as 

 essential that there should be a record of every 

 receipt of material into stores and stocks as that 

 there should be a record of every withdrawal, 

 otherwise an accurate balance can never be main- 

 tained. Promptness and accuracy in posting are 

 essential, for perpetual inventories require per- 

 petual attention, and on this hinges their success. 

 All documents relating to the receipt and disburse- 

 ments of material should be preserved for at least 

 the period during which they may be needed as a 

 check. This would be, ordinarily, until an actual 

 count has been made. 



Advantages of Physical Inventories. Advo- 

 cates of the periodic physical inventory, as distin- 

 guished from the perpetual inventory or stores 

 ledger accounts, claim that the former is abso- 

 lutely necessary, and that the hundreds and thou- 

 sands of entries in stores ledger accounts cannot be 

 free from errors, some of which may be serious. 

 One objection raised against the physical inventory 

 is that it necessitates closing down the plant. It is 

 claimed, however, that the closing down of a plant 

 for, say, a week every year is desirable, anyway, 

 for other reasons, such as repairs, alterations, 

 and replacements. Some plants make a practice 

 of shutting down for a short period in the summer 

 when many workmen are asking for vacations. 



