Stock Register Format

What is a stock register?

A stock register (stock book or bin card) keeps the movement of each item: the opening balance, every receipt and every issue, each with its date and document, and the balance after each entry. The physical stock should always match the last balance.

Under GST, every registered person other than a composition dealer must keep an account of stock for each item: opening balance, receipts, supplies, goods lost, stolen, destroyed, written off or given as gifts or free samples, and the balance (rule 56 of the CGST Rules). Books must be kept for 72 months from the due date of the annual return for the year.

What a stock register must show

• Item name, code, unit, and the store or location.
• Opening balance at the start of the period.
• Each receipt with date, document (GRN, purchase invoice, production) and where it came from.
• Each issue or sale with date, document (issue slip, challan, invoice) and where it went.
• Running balance after each entry.
• Goods lost, damaged, written off or given as samples, entered separately with the reason.
• Reorder level, and the storekeeper’s signature at each physical check.

Physical counts and valuation

Count the stock against the register regularly (fast movers monthly, the rest at least once a year) and record any difference with the reason before you adjust the balance.

For the accounts, closing stock is valued at the lower of cost and net realisable value (AS 2 or Ind AS 2), using first-in first-out or weighted average cost.

Common mistakes

• Entries made from memory at the month end.
• Receipts and issues written without the document number.
• Damaged and expired goods still counted in the balance.
• One register for many items, so no item’s balance can be checked.

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