Stock Management, Budget Responsibility,Credit Control & Wages/Accounts Opening

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OUTLINE-INTRODUCTION-WHO IS THE STOCK MANAGER-HOW IS STOCK MANAGEMENT DONE-STOCK ON HAND-DOCUMENT USED IN STORE-ISSUING METHOD-BUDGET-BENEFIT OF BUDGETING-BUDGETING FOR SUPERVISOR-MEANING OF CREDIT CONTROL-HOW DEBT ARISES-PROCEDURE OF CREDIT CONTROL-MEANING OF WAGES-WAGES COMPOSITIONS-PROCESS OF GETTING WAGES PAID-SALARY ACCOUNT OPENING-PROCEDURE

INTRODUCTION

Stock management is one of the responsibilities of Field Supervisor.

The ability of not being stock-out. Field Supervisor must

be more careful in managing their subordinate in stock and

lowering operating costs.

Budgeting deals with ability to plan the material & human.

Credit Control deals with monitoring of invoice and related payment.

Wages deals with definition, composition & the process.

Salary Accounts Opening deals with the steps in opening bank

accounts

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STOCKMANAGEMEN

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WHO IS THE STOCK MANAGER?

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Who should be the stock manager? Who can understand all the issues,

be comfortable with studying available data, and fairly arbitrate between

departments and individuals with strongly held views? The short answer is

that anyone who can think like a producer can be the stock manager.

In theory an editor, a marketing manager, a business manager, a sales

manager, or a director can perform this function. In reality most non-

business people do not have access to or understand stock data. Further,

there are some business staff who are not completely comfortable with

some stock management concepts or tools. The rest of this paper is

devoted to filling this conceptual gap for both field supervisor and their

subordinate.

HOW IS STOCK MANAGEMENT DONE?

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Post stock management begins with reviewing the material

to be use in location. Monthly reports for the supervisor

should have preset rules for flagging low stock . These rules

should be conservative enough to be sure no titles are

missed in any category. The field supervisor will need to study key figures

taken from these reports, and then make a number of calculations to derive several significant ratios for

further analysis.

STOCK ON HAND

In addition to assessing stock value, the field supervisor will

want to consider the actual number of units on hand for

service.Every location has its capacity, and the field

supervisor must keep stock within those limits. Field supervisor should be very careful not to be

stock-out and particularly mindful of business relationship that will

be affected .

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DOCUMENTS USED IN STORE*Waybill Inward/Outward-This is used to accompany any goods

from the store to the customer and vice versa.*Store Requisition/Issue Voucher-This is used to request for

office items in the store*Store Bin Card-This is used to record any

item(RM,FG)received and issued. *Store Ledger Control Card-This is used to monitor all items

received & issued.*Local Purchasing Order-This is used to request for items not

available in the store. Otherwise it is used to request for supply of requested item.

But in the case of location, spreadsheet will be issue for proper recording of item receipt & issue.

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ISSUING METHOD*FIFO-(First-in first-out method): This is used base on

what come in first will go out first. It depends on the durability of the item involve

*LIFO-(Last-in-first-out): This is used base on what came in last will go out first. Equally, it depends on the durability of the item involve

*WEIGHTED AVERAGE: This is used base on the price variance of an item from different source. The average of the sum of the price will determine the price of selling such item

As in the case of supervisor, FIFO method should be adopted

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BUDGET RESPONSIBILIT

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BUDGET

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A budget is a plan that covers a specific period of time. It helps management / supervisor determine how best to use its resources – both materials and manpower.

BENEFITS OF BUDGETING

PlanningCoordination and communicationBenchmarking

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BUDGETING FOR SUPERVISORTo ascertain the number of days in a

week/month

This will assist in calculating the item required for his/her location

For effectiveness, he/she should have a dead stock level(minimum re-order level) to avoid stock-out.

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CREDIT CONTROL

MEANING OF CREDIT CONTROLCredit Control is activity aimed at serving the dual purpose of increasing sales revenue by extending credit to customers who are deemed a good credit risk, and minimizing risk of loss from bad debts by restricting or denying credit to customers who are not a good credit risk.

Effectiveness of credit control lies in procedures employed for judging a prospect's creditworthiness, rather than in procedures used in extracting the owed money. Also called credit management.

HOW DEBT ARISESType Date Num Memo Debit Credit WHT Balance

Aero Contrator              Invoice 01/05/2010   Balance B/F 194,365.38    194,365.38Invoice 03/05/201040306   194,365.38    388,730.76

Payment 05/05/2010FIDELITY 03404582

INVOICE 40187 APRIL   185,000.00         9,365.38  203,730.76

Invoice 01/06/201040425   194,365.38    398,096.14

Payment 08/06/2010FIDELITY 04006007 MAY 40306   185,000.00         9,365.38  213,096.14

Invoice 01/07/201040741   194,365.38    407,461.52Payment 09/07/2010fidelity 04006055 june 40425   185,000.00         9,365.38  222,461.52Invoice 02/08/201040934   194,365.38    416,826.90Payment 04/08/2010fidelity 04006092 july   185,000.00         9,365.38  231,826.90Invoice 01/09/201041107   194,365.38    426,192.28Payment 03/09/2010fidelity04278859 Aug   185,000.00         9,365.38  241,192.28Invoice 04/10/201041296   194,365.38    435,557.66Invoice 04/11/201041297   194,365.38    629,923.04Invoice 04/12/201041298   194,365.38    824,288.42Payment 03/09/2010fidelity04278859 Sept,Oct & Nov   555,000.00       28,096.14  269,288.42Invoice 04/13/201041299   194,365.38    463,653.80

1,943,653.80 1,480,000.00 74,923.04 463,653.80Summary                 A                 B                     C             D

1A minus B = D 463,653.80

Actual Debt2A minus B minus C 388,730.76

Difference W H T 74,923.04

PROCEDURE OF CREDIT CONTROL

*Collection & Submission of Invoice*Monitor the Processing for payment*Payment Advice on any payment

made either cheque or direct transfer

*Deduction- Monitor WHT receipt to complete a transaction

*Provide adequate information on Invoice & Payment.

WAGESWages is a monetary remuneration computed on hourly, daily, weekly or piece work basis for the service render.

A fixed weekly or monthly wages is usually called a SALARY

WAGES COMPOSITION

Wages comprise basic and allowance which aggregate to gross wages. Base on the 2012 Personal Income Tax Act, calculation is based on gross wages thus:

GROSS- PAYE-UNION-PENSION=NET PAY

WAGES CONTDPROCESS OF GETTING WAGES

For a staff to get his/her salary with the company the following steps needs to be follow:

The site supervisor prepares a jotting sheet which show those on duty and absentism.

The jotting must be signed by i The Cleaners @ Location ii, The Supervisor @ Location iii, The Operations Manager @ Head Office

Submition of the signed jotiing to wages section of Accounts Department

SALARY ACCOUNT OPENINGA staff is expected to open a bank account on the presentation of company’s I D Cards except he/she have an account (which is not dormant)

PROCEDURE

o On getting ID Card, visit the Accounts Department to collect bank account opening form, fill & submit with passport as directed by the staff in chargeo Letter of introduction is done to accompany the formoAn sms alert is sent to the staff and he/she will forward the account details to head office (Accounts Department)oFor any delay, please do: i, there is incorrect filing of form i.e signature etc ii, banks internal problem, you need to wait.

LAWAL ABIODUN A

SENIOR MANAGER-ACCOUNT

NIGERIA CLEANING SERVICE LTD

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