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Material Requisition

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16 views5 pages

Material Requisition

Uploaded by

mujahed_muhammed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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What is a Material Requisition?

A material requisition, also known as a materials requisition form, or a material


request, is a document used by the production department to request materials
they need to complete a manufacturing process.

It is used to authorize and keep a record of the components used so that an


appropriate inventory can be stocked to keep production moving.

Information on the requisition is used to update the stores record card, also
known as the bin card, and the stores ledger.

It’s also used to determine the direct materials used on various jobs or products,
along with the indirect materials used by various cost centers.

The bin card is a paper or computer record used to keep track of inventory for
each stock item held in storage.

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The card details the amount of stock received and issued, the amount of stock
reserved to meet current production orders, and any residual balance free for
future use.

The production manager generally fills out the materials requisition form and
delivers it to either the materials or storage department where all the raw
materials are located.

Then, the materials manager approves the request and has the raw materials
moved from the storage area to the production floor.

The person who is requesting the materials will keep a copy of the form, as will
the warehouse staff. An additional copy goes along with the picked goods to
their eventual destination.

If any items listed on the form are not in stock, another copy may go to
the purchasing department so they can create a purchase requisition
and purchase order to obtain the necessary materials.

What Information Does the Materials


Requisition Form Contain?
Typically, this form has the job number, the date of the request, the date the
items are needed by, material description, item number, quantity, and proper
management signatures for approval.

Depending on the size of the organization, these forms may be filled out daily,
weekly, or even hourly.

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Example Materials Requisition Usage
Because the form lists the items to picked from inventory and used in either the
production process or in the provision of a service to a customer for a specific job,
the form generally has three purposes:

To pick items from stock.


To relieve inventory records of the items picked
To charge the targeted job the cost of items requisitioned

You can also use it as a basis for ordering any inventory items that are currently
out of stock.

For example, when your company orders goods, they are delivered to your
warehouse or storage facility, where the appropriate forms are filled out.

This provides an audit trail that shows both when goods were purchased and
when they were received.

When the production floor needs more materials, it can request them from the
storage area with the material request form.

This adds to the audit trail because it shows when the goods were moved from
your warehouse to production and gives managers the documentation, they need
to support ordering more materials to prevent them from running out of stock.

If managers see goods sitting in the warehouse for months before making it into
production, they know they can order less often, or fewer quantities when they do
place an order.

If managers notice stock is moving more quickly than usual, they can start to
place orders more frequently, or look for volume discounts and place larger
orders.

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The requisition form is also used to allocate production costs to goods in process,
since not all inventories in process will finish in the current year.

As you’ll always have goods in the production process, the forms help allocate
costs and values to these materials so you can keep an eye on your bottom line.

You, however, will not see a material requisition form used in a computerized
planning production environment.

That’s because the picking information is sent to the warehouse as an electronic


message in the system rather than making use of the form.

Some organizations may refer to a material requisition form as a purchase


requisition form, however, there are some differences.

A purchase requisition form can be used for any type of purchase, while the
material form is only used throughout the production process.

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