DEFINITION OF TERMS

1. Materials Requisition Form (MRF) A request made by the outlet for their
production or daily needs.
2. Purchase Requisition (PR) - A request sent to the purchasing department to
procure goods. Contains a description and quantity of the goods to be
purchased.
3. Purchase Order (PO) - A document sent to a supplier or vendor, authorizing
delivery of a product to the customer at a specified quantity, price and terms.
4. Receiving Report (RR) - Documents used to record amount, quantity,
description of raw materials and goods received from supplier or any other
source when items has been accepted. Receipt of goods or materials left for
safekeeping in a stockroom. A receiving report is an important record of the
merchandise that a retailer has actually received from a supplier because it
documents what is owed to the supplier in terms of payment for the goods
received or the return of the goods, in some cases.
5. Stock Issuance Receipt (SIR) - A document that issued by stockroom and
signed by the receiver of a goods to indicate that they have in fact received the
item being issued and have taken possession of it.
6. Stock Transfer Receipt (STR) - This document can be used in transferring
certain items from one outlet to another.
7. Inventory Count Sheet (ICS) - An inventory control tool used when taking a
physical inventory. The count sheet will generally include a description of the
item, including location of the item and a column to record the quantity counted.
The results are compared to the theoretical inventory to determine inventory
variances.
8. Production Report A summary of items used for particular consumption such
as Staff Meals, Event Production, Spoilage and Complimentary Reports.

Requesting for Materials

The operation started when a Materials Requisition Form (MRF) is requested by the
outlets for its daily needs. The MRF sent to the Stockroom for proper evaluation and
also to check the availability of the raw materials. Once the material is deemed
available delivery should at the soonest possible time.
How to Properly Complete the Materials Requisition Form (MRF):
a. Fill out the Outlet Name, Date Ordered, and Requisitioning Person properly.
Note that, only authorized personnel should order items from the purchasing
department to avoid dual ordering of items.
b. Fill out the Items and the quantity needed legibly to avoid miss delivery.
c. Deliver the documents to the stockroom to check availability of items, if items are
not available, purchasing of items should be followed. Once a material is/are
available signature of purchasing officer or stockman should be affixed to the
form and delivery date should be properly fill-out.
d. Two copies of MRF should be maintained the Original copy goes to the
Stockroom and the duplicate to the requisitioning Dept.
Getting Materials from Stockroom
Most of our materials are stored in stockroom.
To start with, once the MRF is issued by the requisitioning store and availability of
materials is properly accounted for, a Stock Issuance Receipt will be issued by the
Stockroom.
How to Properly Complete the Stock Issuance Receipt (SIR):
a. Fill out the requisitioning date and the requesting outlet first;
b. Fill out the Materials and Quantity Required legibly and properly; and
c. Fill out the proper signature, Issued by = Stockroom, and Received by =
Requesting Outlet.
d. Two copies of SIR should be maintained the Original copy goes to the
Requesting Outlet and the duplicate to the Stockroom.

Purchasing for Materials

If Items requested are not available in the stockroom, the stockman prepares Purchase
Requisition (PR) and sends to the purchasing department to procure goods.
How to Properly Complete the Purchase Requisition (PR):
a. Fill out the requisitioning date;
b. Fill out the Materials and Quantity Required to purchase to maintain the par
stock; and
c. Fill out the proper signature, Requested by = Stockroom, Checked by: Operation
Manager and Received by = Purchasing Department.
d. Two copies of PR should be maintained the Original copy goes to the Purchasing
Department and the duplicate to the Stockroom
The Purchasing Department should look for suppliers of the items need to be
purchased.
Things to consider in selecting the supplier:
a. Quality of the Items
b. Prices of the Items
c. Suppliers Terms
The Purchasing Department should choose the BEST supplier of the items.
Preparation of Purchase Order (PO) follows.
How to Properly Complete the Purchase Order (PO):
a. Fill out the PO date, Suppliers name, delivery date and terms;
b. Fill out the materials, quantity and amount required to purchase; and
c. Fill out the proper signature, prepared by = Purchasing Department, Noted by:
Operation Manager and Approved by = General Manager.
d. Purchase Order Number is in numerical order.
e. Three copies of PO should be maintained the Original copy goes to the Supplier,
one for Request for Payment(RFP) and one for Purchasing Department
Receiving of Materials
Receiving Report (RR) are documents used to receive items from different sources.
Items coming from supplier must accompanied by invoices for proper payment and

check preparation. Items received from internal source should accompanied by Stock
Transfer Receipt.
How to Properly Complete Receiving Report:
a. Input the source of merchandise received (Supplier or Outlets);
b. Fill out the date received and other information of delivery (PO No. and Invoice
No.);
c. Fill out the items delivered, Item Name and the quantity received.
d. Affixed proper signature of actual receiver to be checked by his immediate
superior.
e. Three copies of PO should be maintained the Original copy is for RFP, one for
Accounting and one for Purchasing Department

Transfer of Items from one outlet to another

Sometimes, availability of materials from Stockroom low, and other outlet have an
inventory on the required items. Thus, transfer is needed to fill up the requirements of
the other outlet so the function of Stock Transfer Receipt (STR) is needed.
How to Properly Complete Stock Transfer Receipt:
a.
b.
c.
d.

Input the source of merchandise received (Outlets);

Fill out the date transferred;
Fill out the items transferred, Item Name and the quantity transferred.
Affixed proper signature of actual receiver to be checked by his immediate
superior.
e. Two copies of STR should be maintained the Original copy goes to the Receiving
Outlet and the duplicate to the Source Outlet.
Inventory Control
Items or Goods might be lost due to negligence, mishandling and actual stealing. There
are ways in controlling lost of materials, but the best way is by counting and proper
recording of the materials received, issued to outlets, sales/production, spoilage and
other factor that might affect the movement of inventory.