CHAPTER XXVII 

DEPARTMENTAL SUMMARIES OF ISSUES AND RECEIPTS

2701. Bills have to be issued for stores supplies (debits) from Stores Depots  and payment (credits) have to be made for stores received from outside sources in stores, depots. In the case of all issues and in the case of receipts of stores from departments and workshops of the railway, (i.e. excluding supply by purely outside agencies), debits and credits are originated by the Stores Accounts Officer, the following procedure being followed. Summaries of such receipt of issue vouchers (including Depot Transfer Issues but excluding Issue Notes relating to auction sales, sales for cash and issues chargeable to Miscellaneous Advances Accounts) will be prepared periodically for each departments or workshop to be debited for credited up-to-date total being carried forward periodically and, supported by copies of the vouchers included therein, will be forwarded to the department concerned. The summary issued for the last day of the month will be the bill. This procedure enables the departments to carry out the duties at their end in connection with the vouchers progressively from period to period instead of the entire bulk of the work descending on them once a month only. The chart shown below  illustrates the above procedure along with that for reconciliation together with the subsequent steps to be taken for incorporation of the transactions in the General Books.
Chargeable to Departments
Vouch
I

2702. Departmental Summaries of Issues :—The duplicate copies of the Issue Notes (the bill foils) should be sorted according to the departments or workshop to which stores have been issued. They should be the checked with the advice of debits (issue Departmental Summary) received from the Computer Center. They should be then entered into Advice of Debits which should be prepared in duplicate by Carbon process in Form S. 2702.

No..................................................
Summary of Issue Notes showing the total value of Stores issued to the Deptt./Divn. For the period from....................to................ ------------------------------------------------------------------------------------------------------------------------------------
                        Period                                                     Amount                                                Remarks
From                                To                                 Rs.                              P.
                                                                                                                                            

                                                                                                                                               Brought forwerd. As per this period;

                                                                                                                                               Total :S

Separate series of numbers commencing from unit, each month should be allotted to Debit and Credit Summaries to each department. Numbers for debit and credit summaries should be distinguished by the letter T and 'R' respectively being added to the numbers allotted to such summaries. 

2703. Each item of a voucher should be separately entered in the summaries. 

2704. Deleted and provided for in Para 2702-S.

2705. Summaries of Receipts :—Advice Notes for Returned Stores (S.1539) and for Materials supplied to Stores by Workshops (S. 1531) should be sorted by the departments and shops concerned and checked in the same manner and summary supplied as laid down in paragraph 2701in the form shown below :

2706. Monthly Abstracts of Departmental Summaries of Issues and Receipts—After the postings for the period have been completed, the total to the end of previous period is struck. The total of each summary should be entered in a Monthly Abstract of Summaries which should be maintained separately for receipts and issues in the following form. 

2707. It will be seen from paragraph 2902 that the head Capital Suspense is divided into several Main-Heads among which ''Stores Suspense" is one, which again is divided into several sub and detailed heads (for facility of reference and reconciliation with connected subsidiary registers and accounts) among which also appear headings styled 'Stores in Stock-in Depots', Stores in Stock-Fuel (Coal), and 'Stores in Stock-Fuel (Diesel)' vide Paragraph 2903. This represents the priced ledgers. The group summaries and the Group ledger represent the receipt and issue transactions in the priced ledgers. Paragraph 2613 provide j reconciliation with the Monthly Abstracts of Issues and Receipts (S. 2706). For this purpose in general and particularly for the purpose of providing a subsidiary journal for the transactions posted in the priced ledger to facilitate the collecting together of all such transactions posted in one place with reference to the contra heads of accounts affected( whereby one journal slip could be prepared for incorporation in the account;;) the following nature of transactions should also be posted in the Abstract of Receipt; and Issues (S. 2706) so that it is a complete record of all transactions passing through the priced ledgers. Such transactions are those for which debits or credits are not made against departments, or shops but against other heads of accounts under Capital Suspense. 

2708. Proforma Summaries.—Separate series of summaries detailed headwise (not to be issued) should, therefore, be prepared for the following kinds of vouchers, viz. Receipt Summaries for :— 

(a) Advices of Receipts for purchases—Imported. 

(b) Receipt Notes for Purchases......Indigenous Purchases by Railways including Railway Board.

(c) Receipt Notes for Purchases through Centralised agencie such as DGS & D, CSRP, etc.

(d) Depot transfer of Receipts and Issues. 

(e) Vouchers for Credits to Stock Adjustment Account 

(f) Vouchers for Debits to Stock Adjustment Account. 

(g) Vouchers for material received after fabrication.

(h) Vouchers for material received on loan. 

Issue Summaries for :— 

(a) Auction Sale Issue Notes. 

(b) Issue Notes for Direct Sales on cash payment. 

(c) Issue Notes in connection with issues by debit to Miscellaneous Advances. 

2709. The summaries would be prepared in the same manner as laid down in paragraph 2703, but not necessarily on the forms of Advice of Debits or Credits, and the periodical total entered in the Monthly Abstracts of Receipts or Issues (S. 2706) as laid down in paragraph 2706. 

2710. The total of the entries for a period in the Monthly Abstract of Receipts or Issue (S. 2706) should be reconciled with the total postings for the period with respective Monthly Abstract of Group Summaries (S. 2709) in the manner laid down in paragraph 2613.

2711. After this reconciliation has been effected, one copy of the periodical summary of Receipt or Issue should be sent to the department concerned for that period. 

2712. Time Table for dispatch of Summaries of Receipts of Issues. -  As a rule, the summarie should issue without delay along with the vouchers from the Accounts Office. Thus, if the Accounts Office is adjacent to the depot, the summaries relating to the vouchers of the last day of a month should issue in the first week of the following month. The periodicity of the periodical summaries shall be fixed by the FA & CAO in consultation with their Controller of Stores, subject to the condition that the summary for the last day of the month, is not delayed beyond the first week of the following month. 

2713. Reconciliation With Group Ledgers.—At the end of the Monthly Abstracts of Receipts or issues (S. 2706) should be totaled and the Grand Total agreed with the corresponding total of the receipt and issue appearing on the Group Ledgers for the Depots, as laid down in paragraph 2617.

2714. Monthly Bills. -The periodical summary for the last date of the month should be prepared in triplicate and would form the. Monthly bill of credits or debits. Two copies of the same should be sent to department concerned for acceptance, allocation and return of one copy. The journals slip for the month should be prepared based on the initial allocation given on the vouchers.

2715. Register of Departmental Summaries. -A register (S. 2715) should be maintained in manuscript in two one for receipts and one for issue:; and should show the number and date of the last summaries and the total amount for the month and the designation and station of the departmental officers concerned. It will be used to watch the acceptances of the debits or credits raised. On receipt of acceptance of the summary, the date., should be entered against the items concerned in the register. The register should have columns to note down the allocations as shown by the officers accepting the bills. At the end of the month the various columns should be totaled and the journal slip mentioned in paragraph 2707 prepared crediting debiting or General or Engineering Stores by contra adjustment to the transfer head concerned. 

2716. Check of Departmental Summaries.—Departmental officers receiving periodical Summaries should first see from the consecutive numbering that every previous summary has been received, and if any have gone astray should call for 'hem or for. the copies. They should then "allocate" the summary and post the Allocation Register or Work Register, as the case may be. The copies of the issue notes received with the summaries should be paired with the accepted copies of issue notes forwarded by the indenters, and should there be issue notes for stores not received or received in a damaged condition, they should take up the matter with the Stores or the Traffic Department vide paragraphs (2128 to 2138); but they must in the first instance take all issue notes into account without exception leaving any readjustments arising out of such loss or damage to be made subsequently, when the question has been settled. The cost of such stores, should be allocated meanwhile to Miscellaneous Advances Account after duly advising the Accounts Deptt. Departmental Officers will be entirely responsible for seeing that this account is expeditiously cleared. 

2717. Issues to Capital Works and to Surveys.—In all cases in which stores are issued to Works or to Surveys, a charge of 5 percent should be added to the book value of stores. The credit for this percentage charge should be afforded to Revenue A. 490.

In the case of issues to all Works and Surveys not funded from railway finances i.e., deposit works for non-railway bodies on additional charge of 121% should be levied on account of departmental charges, giving the contra credit to earnings. 

2718. Acceptance of Last Departmental Summaries.—If a Departmental Officer has allocated and posted his Summaries punctually and regularly there should be no delay in the allocation and return to the Stores Accounts Office of the last summary (i.e., bills). It is essential that the total amount of the last summary should be allocated in full. The final summaries duly accepted should be sent to the Stores Accounts Office by the 10th of the month in which they were received. If the allocated vouchers are not received in time, the vouchers should be allocated based on the initial allocation of the vouchers. Any discrepancies noticed shall be adjusted subsequently. 

2719. It may sometimes happen that vouchers pertaining to one branch or division are entered wrong. Mistakes of the above nature should be promptly set right when they are noticed, or are brought to notice of the concerned Accounts Officer. But if the final summary for the month has issued that summary should nevertheless be accepted by the officer concerned in full and any adjustment necessary carried out in the accounts of the following month.

2720. Issue of Transfer Certificates"—in the case of rail way/production unit where the entire Accounts Organisation is centralised in the Headquarters of the railway no transfer certificates are necessary, the necessary booking to the respective accounts being made from Journal Slips prepared on the authority of the accepted last summary or the allocation summary as the case may be.

2721. Suspense Accounts Registers.- -Suspense Accounts Registers have to be maintained sub-detailed headwise in connection with transactions of certain categories such as sales, issues on suspense account, etc. in order to maintain proper accounts to facilitate recovery of dues to the railway or watch clearance of outstanding items. Such registers in connection with the transactions posted in the Priced Ledger are :—

(a) Sale Account Registers (Para 2722) 

(b) Deposits Miscellaneous Accounts Register (Para 2729) 

(c) Miscellaneous Advances Account Register (Para 2739) 

(d) Stock Adjustment Account Register (Para 2740) and 

(e) Stores-in-Transit Account Register (Para 2746) 

2722. Sale Account Registers.—Separate registers for each depot separately for and other than fuel should be maintained in the following form for recording:— 

(a) Sale to Railway employees 

(b) Sales to outside Parties—Cash sales 

(c) Sales to Outside Parties—Sales by tender 

d) Sales to Outside Parties—Auction Sales

(e) Sales to other Railways 

(f) Sales to other Government Departments 

(g) Export Sales 

(h) Sales to Public Undertakings 

2724. Separate pages should be allotted for each auction in the case of the Register for Auction Sales Account and for each tendered in the case of sales by tender. 

2727. The bill should show particulars of the requisition or application for sale, the issue notes, amount and name of party concerned. The freight and departmental charge:, that have to be levied under paragraphs 2328, 2329 and 2331 should be added to the amount of the bills where necessary. Before issue, the bill should be checked with the entry of conditions of sale in the Sale Order Register (S. 2325) to see that the percentage charges are not omitted. One copy of the bill will be retained as an office copy and the remaining two copies alongwith one copy of the issue note should be sent to the head of the office concerned immediately after the preparation of the periodical Summaries of Issues and in the case of frequent sales to the same party during the month, by the 10th. of the month following that in which the stores were issued. 

2728. When the credits for the amounts billed for are received, the value of the stores should be posted in the Sales Register (S. 2722) and the recovery of freight and incidental charges should be credited to Abstract. A. 490 and that of departmental charges to Abstract ''Z" earnings. The latter credit is to be passed on the Traffic Account Branch through a local Transfer Certificate. In case of Production Units, these charges should be credited to Overheads (Workshop Manufacturing Suspense).

2731. Reconciliation of Sales m& Deposits-(Miscellaneous Accounts Registers).—As soon as the postings for a month have been completed, totals and balances under each sub-detailed. head should be struck and checked and reconciled with the General Books as soon as the Monthly Accounts have been compiled. The certificate of reconciliation should be recorded on the registers by the Section Officer/ Books Section. The registers should then be scrutinized to see that items which have remained over are current and suitable action taken for the early adjustment of the outstanding. A summary shot-id then be compiled each month, showing the number of items  outstanding relating to such month. All items outstanding for more than three months should be specialty detailed and the orders of the Accounts Officer obtained thereon. 

2732. Deleted. 

2733. Auction Sale Accounts -The sale proceeds less auctioneers  commission (where it is deducted from the sale proceeds in terms of agreement) will be remitted to the Railway by the auctioneers immediately on receipt of the money from the purchasers and in any case not later than seven days of the d livery of each lot; this will be watched through weekly lists of deliveries (S. 2440) submitted by" the Depot Officer. At the end of each auction. the auctioneers will prepare an Auction Sale Account and .send it in duplicate through the Depot Officer and the Controller of Stores who will countersign one copy and send it to the Accounts Office. The auctioneers should be instructed to prepare separate accounts for sale of scrap and the sale of other stores. The auction sale accounts should be received in the Accounts Office within a month from the end of the auction according to the auction programme.

2734. The auction sale accounts should be checked with the completion reports submitted independently by the Depot Officer and the Accounts Stock Verifier (vide paragraph 2441 and differences, if any, investigated. It should then be examined to see.

(a) that the amount realised has been correctly computed according to the bids noted in the Auction Sale Completion Report submitted by the Stock Verifier and that it agrees with the total remittances made and that the amount of auctioneer's commission, where deducted, is correct ; 

(b) that the arithmetical calculations art correct; and 

(c) that the account has been countersigned by a Gazetted Officer of the Stores Department. 

2735. List of refunds.—Scrap is generally auctioned on the basis of a rate per ton and the sale price is recovered on the basis of the quantity estimated a; comprising the lot. If, on weighment at the time of delivery of the stores, the actual quantity is found to be more than the estimated value of the auction, the cost of the excess quantity at the sale rate would be realised before permitting delivery. If, on the other hand, the actual quantity is less than what has been actually paid for, a refund becomes due. In such cases a list of refunds is prepared by the Stores Department and countersigned by the Stock Verifier who witnessed the deliveries. The statement gives reference to auctioneer's Delivery Order No., date, name of purchaser, quantity auctioned, quantity actually delivered, rate, amount realised, amount actually due and amount admissible as refund. This should be checked with the auction sale account submitted by the auctioneers which should show the amount recovered from each purchaser with reference to the cash remittance note under which the amount was remitted to the Treasure. Pay Orders should then be issued for the sum refundable to the parties concerned. The details of the refunds allowed should be entered according to the depots and sale accounts in the respective Sales Accounts Register. 

2736. When the accounts of particular auctions in the Auction Sale Register have been completely closed without balances or discrepancies, the auction sale accounts and the completion reports referred to in paragraph 2441 should be endorsed with a certificate to that effect and put up to the Stores Accounts Officer for signature after which they should be filed away. 

2737. Auctioneers. Commission Bills. The auctioneers submit alongwith auction account the bills for commission, unless they are permitted to deduct their commission charges from the sale proceeds of the auctioned material. The Controller of Stores, after satisfying himself of the correctness of the bill, should forward the same to the Accounts Office for audit and payment. The bill should be checked for the correctness of the rates and amounts and particularly as to whether the sums on which the charges are levied have been actually received by the Railway!- The bill should then be passed for payment by debit to Stock Adjustment Account loss  on sales.

2738. Loading charges.—When Stock Verifiers witness deliveries of stores auctioned or sold, they should submit to the Accounts Officer/Stores a monthly statement showing the amount of loading charges recovered. Before submission of the statement it should be reconciled with the depot records and a certificates to this effect recorded thereon. These statements should be checked with the amounts accounted for by the Treasurer of the Railway. The amounts should be credited to Abstract A. 490. 

2739. Miscellaneous Advances Account Register (Capital).—The issue notes chargeable to Miscellaneous Advances Account should be posted into this register sub-detailed head wise and the clearance of the debits watched there from as laid down in paragraph 2732. At the end of each month the debits and credits and the balances in each month should be reconciled with the General Books and a certificate of reconciliation endorsed on the register on the same lines as in the case of the Deposits-Miscellaneous Register vide paragraph 2731. 

The sub-detailed heads under Miscellaneous Advance s (Capital) are :—

(a) Miscellaneous Advances (Printing), 

(b) Miscellaneous Advances (Clothing), 

(c) Miscellaneous Advances (Ferrous), 

(d) Miscellaneous Advances (Others), 

(C) Miscellaneous Advances (Risk & Cost/Production Units). 

I. Results of Stock Verification : 

P. 7181—Differences between the Ledger balances and the ground balances discovered by the Stock Verifier.

P. 7182—Differences between the Ledger balances and ground balances discovered during Departmental Verification. 

II. P. 7183—Differences arising out of revaluation of stores due to market fluctuation of purchased stores. 

P. 7184—Differences arising out of revaluation of stock due to market fluctuation of shop manufactured stores. 

III. Miscellaneous Items : 

P. 7185—Differences in book value and value realised in Sales.

P. 7186—Losses on classification of new stores as second hand scrap. 

P. 7187-—Other Losses i.e., breakage, leakage or loses in transfer. 

P. 7188—Rounding off. 

P. 7191—Miscellaneous items. 

P, 7192—Value brought on books through depot stock sheets pending receipt of voucher.

                                                                                                                                                                         Farm No. S. 2740
STOCK ADJUSTMENT ACCOUNT 

2741. Posting and Reconciliation.—The postings in the account will be made from the various journal slips prepared for the different transactions, surpluses and deficiencies being shown separately. A summary of all the parts should be made at the end of the month reconciled with the figures in detail (manuscript) registers, which should be maintained on the same lines as the account and be posted from Accounts Depot Stock Verification Sheets and Adjustment Stock Sheets. The Account should be signed by Stores Accounts Officer. 

2742. Clearance of the Balance in the Stock Adjustment Account.—The greater vigilance should be exercised in clearing items from the Stock Adjustment Account and as a rule all items should be finally cleared in six months. Items of small value, or items the retention of which in the Stock Adjustment Account for any period serves no useful purpose, should be promptly cleared by debit to final heads of account. Items remaining unlearned at the end of quarter ending 30th June, 30th September, 31st December and 31st March should, unless the enquiries are so far and well advanced that their clearance within the space of a month or two may be expected, be specially reported to the General Manager of the Railway whose orders as to the heads of account to be debited and credited should be obtained, these orders being recorded in the Minutes of Official meetings. Items appertaining to works should be adjusted in accordance with the provisions of paragraph 1815-E. All other items should be adjusted under working expenses, except such items of credits, if any, as may be due to the accumulated effect adjustments, which ought to have been carried out in previous years. These latter should be credited to Earnings. In the case of Production Units, these differences should be adjusted to Overheads (WMS). 

Note:—Difference arising from the reconciliation of price ledger balances with the General Books as provided for in the Note under paragraph 2632-S may be cleared from the Stock Adjustment Account under the General Manager's powers provide the general state of accounts is such that it can be clearly certified that there has been no fraud or irregularity of any kind. In all other oases. the differences should be reported to Board for their orders. 

2743. The net result of all surpluses and deficiencies discovered should be adjusted in the accounts of the year in which they are discovered. In exceptional cases, where the amount is, very large, it might be desirable to provide that the adjustment should be spread over for some years but this should not be done without the sanction of the Railway Board. 

2744. At the end of the year, gross surpluses and differences should be worked out separately for the headings 'Results of Stock Verifications, Result of Revaluation, and 'Miscellaneous items and a comparison made with the corresponding figures for the previous year and submitted to the General Manager for his information. At the same time, the net charge to Stock Adjustment Account in the year should be compared with the actual issues during the year and the percentages worked out and intimated to the General Manager. 

2745. After the accounts for March have been closed, a statement showing the gross surpluses and deficiencies transferred to Stock Adjustment Account during the year under the headings mentioned in paragraph 2740 above and showing also how the balances under each heading have been adjusted against the several grants of earnings during the year should be prepared in the attached form and submitted to the General Manager for his information.

                                                                                                                                                                         Form No. S. 2745
STATEMENT OF ADJUSTMENT OF BALANCES UNDER. STOCK ADJUSTMENT ACCOUNT

2746. Depot Transfers—-When the stores issued during a month from a depot are not received in the receiving depot in the same month, such items would not appear in the accounts of the receiving depot. It was stated in paragraph 2524 that the issuing depot would submit summaries of issues to the receiving depot concerned and that the receiving depot should note down on the summaries the dates of accounted of each of the items as they are posted in the priced ledgers. At the same time a preformed summary of receipts is prepared for the month by the Accounts section (vide paragraph 2708). At the end of the month, unaccounted items in the issue summaries should be posted into a register styled "Register of Stores-in-Transit." maintained in the form below and their clearance should be watched carefully. When any such item is accosted for later, the credit should be posted in the register in the column for the month of accounted and against the debit entry for the item concerned. Separate registers should be maintained for each depot for— 

7172—Stores-in-Transit Depot—Transfer other than Fuel; and

7173—Stores-in Transit-Fuel                                     

                                                                                                                                                                                                                                                                Form No. S. 2746
STORES-IN- TRANSIT REGISTER

2747. The balances lying in the Stores -in Transit Registers should be carefully analysed each mouth and if any item has been found to be outstanding for more than one month, the mailer should be taken up with the Depot Officer concerned. Special lists of items outstanding for more than three months should be sent to the Controller of Stores for taking steps for their clearance.

2748 Stores-in-Transit 'Purchases'.—-The credits to Purchases Account are posted from the Receipt Notes granted by the Stores Depot. In cases where Inspection and Receipt Work is centralized such receipts are granted on behalf of the Stores Department by the Receiving and Inspecting" Officer. The posting of such receipts in the priced ledgers as a contra debit entry will Appear however only when the material has been received by the Depots stocking the items and accounted for by it in its priced ledgers. In such cases the Receipt Notes granted by the Receiving and Inspecting Officer towards the close of a month would appear as credits to Purchase Account whereas the complementary debits would not appear in the same month in the priced ledgers as the materials would not have reached the stocking depot within the month-

2749. As metioned in paragraph 2808 a summary (of posting) of credits to the Purchase Account should be made out periodically. Similarly, a summary of postings of purchases in the oriced ledgers will be prepared, as laid down in paragraph 2708. After the completion of the postings for a month in the priced ledgers, all outstanding items in the summary of credits to Purchase Account should be posted in a Stores in -Transit-Purchase Register to be maintained separately for purchases. The same procedure as outlined in paragraph 2746 will be followed for the clearance of the items. 

2750. Deleted-
2751. Reconciliation of balances in Stores-in-Transit Registers with General Books.—A statement should be prepared in the forms shown below each .month,...for each stores in-Transit Register bringing out the closing balance sub-detailed headwise which should be reconciled firstly with the total of the balances lying at the close of the month ' in the Stores-in-Transit Register and later with the General Books and a certificate to the effect endorsed in She Stores-in-Transit Register by the Section Officer of the Books Section.

                                                                                                                                                                                                                                                                farm No. S.2751A

STATEMENT OF BALANCES IN STORES-TN-TRANSIT ACCOUNT( DEPOT TRANSFER)

Depot........................................................................Month...................................................................................................... Year

The total of Column 6 should agree with the amount  at debit of the head in head in general Books

                                                                                                                                                                                                                                                                  Form No. 2751 B
STATEMENT OF BALANCES IN STORES-IN TRANSIT  ACCOUNT (PURCHASE)

Depot.................................................................. Month...................................................................................................... year.......... 

The total of Col. 3 should agree with the total Credits to Purchase  Account during the month. The total of Col. 6 should agree with the amount at Debit of the head in General Books.
2752. Deleted.