Reasons for discrepancies: The possible reasons for discrepancy between physical stock and
stock shown in records may be due to the following:
• Shortages of marginal due to spoilage, evaporation, wastage in material handling, break- down in handing and storing. Increase in weight due to absorption of water etc.
• Items of materials placed in wrong location.
• Pilferage and theft from stores by insiders and outsiders.
• Issue and receipt of stock without proper recording and maintenance of stores recording and accounting.
• Stock return not recorded properly.
• Stock ledger to production departments without proper recording stock card and stores ledger.
• Arithmetical errors in calculating the balances in bin card.
• Clerical errors in stores ledger.
• Supplier supplies a different quantity of material than is mentioned in the delivery challan.
• Discrepancy due to improper weighing of material.