For even larger programs, including emergencies, warehouse managers with assistants may be responsible for a number of warehouses and storekeepers in a city or region, or a compound with
Guidelines for Preparing Warehouse Inventory Ledgers
To ensure efficient inventory management, it is essential to maintain two distinct warehouse inventory ledgers: a main ledger for all food received—including original bags, repackaged units, and any damaged or contaminated items—and a supplementary ledger specifically for ‘damaged’ units, which includes those that are broken, leaking, or suspected of being unfit for human consumption This dual-ledger system facilitates smoother reconciliations between the book balances and the physical counts of inventory, enhancing overall accuracy in tracking warehouse stock.
To ensure accurate tracking, maintain separate ledgers for each shipment based on shipment number, donor, and food type For example, when storing wheat from three different shipments, create three distinct ledgers, even if all shipments originate from the same donor.
Record entries in whole units If some bags are only partially filled, record as a fraction of a full unit.
If there are 1 bag and 30 kilos bag with a standard bag weight of 50 kilos, record 1.6 bags.
Update ledgers daily so that balances are available and losses will be detected each day
Close ledgers at the end of each month Field offices and counterparts should coordinate closure of ledgers with SC commodity program staff.
Carry forward the opening balance from the previous month's ending balance If there is no ending balance for the previous month, the opening balance is zero.
1 Recording Receipts and Dispatches in Port Ledgers
Bill of Lading (B/L) documents specify the quantity of units shipped For bulk food shipments, calculate the number of bags by dividing the total weight of the food by the weight of each bag Record the quantity indicated on the B/L in the Expected Receipts column of the ledger.
To accurately record food unit receipts, calculate the total number of sound units, as well as those received in a slack, torn, leaking, wet, stained, or infected condition during discharge from ships at port These totals should then be entered into the Actual Receipts column of the ledger, with the independent survey report serving as the primary source document for this receipt information.
To ensure accurate record-keeping, input the units into the Dispatch column of the ledger directly from the Total Units column in the Dispatch Information section of the waybill, which includes units that have been reconstituted at the port When available, utilize the independent surveyor's delivery survey as supplementary documentation to support these entries.
1 Recording Receipts and Dispatches in In -country Warehouses
For arrivals in warehouses, record in the Expected Receipts column of the ledger the units listed in the Total Dispatch line of the waybill.
In the Actual Receipts column, record the total number of units received that are sound, as well as those that are slack, torn, leaking, wet, stained, or infected upon delivery to the warehouse This information is sourced from the Way Bill Receipts section.
For dispatches from warehouses, enter units in the Dispatch column of the ledger from the “Total Units” column of the “Dispatch Information” section of the waybill.
Enter returns of any dispatches to original warehouses as a negative number in the Dispatch column
To ensure accurate inventory management, it is essential to complete Loss and Adjustment Reports (LAR) whenever food loss or excess is identified For reconstituted food in underweight bags, document the damages in a Reconstitution Loss Report (RLR) If commodities are deemed unfit for human consumption, record the findings in a Commodity Inspection Report (CIR) In cases of suspected theft or diversion, all missing units must be detailed in a Loss Report for Suspected Theft (LRST) Utilize the relevant supporting documentation (RLR, CIR, LRST) to fill out LARs and submit them to management for formal approval, ensuring appropriate adjustments to inventory stock ledgers.
To ensure proper documentation of marine losses at port, it is essential to complete a Loss and Adjustment Report This report must reference or include the independent survey report as a supporting document.
To address all types of losses occurring from the discharge of food from a ship to its delivery at an in-country warehouse, it is essential to complete a Loss and Adjustment Report This report should include supporting documentation such as RLRs, CIRs, LRSTs, and relevant discharge (ex-tackle) and delivery survey reports, which must be referenced or attached to the report.
Complete monthly consolidated Loss and Adjustment Reports for transit losses when food is dispatched between warehouses and/or distribution sites
To address losses identified in storage and documented in RLRs or LRSTs, complete the Loss and Adjustment Reports Once authorized by the LAR, enter the loss amount in the Documented Losses column of the main ledger.
To ensure compliance with health regulations, complete Loss and Adjustment Reports for any food deemed unfit for human consumption by public health officers or authorized officials, as noted in CICs Upon receiving authorization for the Loss Adjustment Report (LAR), record the total loss in the Documented Losses column of the ledger.
To ensure accurate inventory records, submit Loss and Adjustment Reports to an authorized individual designated by the SC Field Office Director for countersigning and approval Once these reports receive approval, they should be returned to the warehouse manager or storekeeper responsible for their preparation.
Warehouse Inventory Reporting Period
Warehouse managers are required to conduct physical inventory and generate Commodity Status Reports monthly, adhering to the same reporting periods utilized in supply chain financial accounting The Field Office Director determines the reporting period's end date for sub-offices, ensuring ample time for data transmission from remote field program locations to the main country office.
Recording Transactions - Ledger Format And Examples 1 Transactions At The Port 2 Transactions at an In-Country Warehouse
PREPARING STACK CARDS V FILING DOCUMENTS VI PHYSICAL INVENTORIES VII REPORTING A Commodity Status Report (CSR) 1 Monetization 2 Guidelines for Preparation of CSRs a Consolidation of CSRs b Sample CSRs B Quarterly Consolidated Report on Food Resources
Proper stacking of food in warehouses is essential for effective storage and handling This section outlines key guidelines for maintaining stack card records, including examples of Save the Children stack cards derived from in-country warehouse transactions For more detailed information on stack maintenance, refer to the Storage and Handling section.
Storekeeper Guidelines for Preparing Stack Cards
Attach a stack card to each stack of food in a warehouse.
To ensure efficient organization in the warehouse, it's essential to maintain distinct stacks and cards for each type of food and shipment number In situations where warehouse space is limited, and food from a different shipment is placed atop a partial stack, it's advisable to utilize a second stack card Mixing shipments in a single stack location should only occur under exceptional circumstances.
Maintain separate stacks and stack cards by shipment number for food that has been received in sound condition.
Maintain separate stacks and stack cards by shipment number for food that has been damaged (slack, torn leaking) and awaiting reconstitution.
Maintain separate stacks and stack cards by shipment number for food that has been reconstituted/repackaged.
Maintain separate stacks and stack cards by shipment number for food suspected unfit (wet, infested, contaminated) for human consumption.
Maintain separate stacks and stack cards by shipment number for unfit food that has been inspected and certified unfit for human consumption.
Record entries in whole units and record partial units in fractions of a unit, eg 1 bag and 30 kilos is recorded as 1.6 units, given that a standard unit is 50 kgs .
Record entries to stack cards whenever food is moved on to or off a stack
Losses discovered at the time of receipt are not recorded on the stack card if the food is not physically present, it cannot be part of a stack.
Regularly audit the food inventory by counting the units in the stack and reconciling this count with the balance recorded on the stack card Any discrepancies should be thoroughly investigated The warehouse manager or storekeeper should determine the frequency of these counts, ensuring that a comparison between the physical stack count and the stack card balance is conducted each time food is added or removed from the stack.
To ensure accuracy in inventory management, compare the amounts on the stack card(s) for each food item and shipment with the balances recorded in the warehouse inventory ledgers Investigate any discrepancies, reconcile the differences, and prepare the necessary Loss and Adjustment Reports.
In-country Warehouse #1 organized received sound units into a usable stack, while underweight units were placed in a separate unusable stack for reconstitution Units suspected of being unfit for human consumption were also set aside pending inspection Once underweight units were repackaged and standardized, they were moved to a repackaged usable stack Units deemed unfit for human consumption after inspection were transferred to an unusable stack for proper disposition Additionally, loan repayments were categorized into a different stack Consequently, stack cards were established based on this organization.
SC Stack Card # 1 SC Stack Card # 2
Warehouse # 01 Commodity : Maize Warehouse # 01 Commodity : Maize
Shipment # 3054 Commodity Unit : Bags Shipment # 3054 Commodity Unit : Bags Donor : FFP/USAID Unit Weight : 50 kgs Donor : FFP/USAID Unit Weight : 50 kgs
USABLE UNDERWEIGHT REPACKAGED USABLE UNDERWEIGHT REPACKAGE
UNUSABLE SUSPECT UNFIT UNUSABLE SUSPECT UNFIT
DATE REFERENCE RECEIPT DISPATCH BAL DATE REFERENCE RECEIPT DISPATCH BAL
SC Stack Card # 3 SC Stack Card # 4
Warehouse # 01 Commodity : Maize Warehouse # 01 Commodity : Maize
Shipment # 3054 Commodity Unit : Bags Shipment # 3054 Commodity Unit : Bags Donor : FFP/USAID Unit Weight : 50 kgs Donor : FFP/USAID Unit Weight : 50 kgs
USABLE UNDERWEIGHT REPACKAGED USABLE UNDERWEIGHT REPACKAGED
UNUSABLE SUSPECT UNFIT UNUSABLE SUSPECT UNFIT
RECEIPT DISPATCH BAL DATE REFERENCE
SC Stack Card # 5 SC Stack Card # 6
Warehouse # 01 Commodity : Maize Warehouse # 01 Commodity : Maize
Shipment # 3054 * Commodity Unit : Bags Shipment # 3054 Commodity Unit : Bags Donor : FFP/USAID Unit Weight : 50 kgs Donor : FFP/USAID Unit Weight : 50 kgs
USABLE UNDERWEIGHT REPACKAGED USABLE UNDERWEIGHT REPACKAGED
UNUSABLE SUSPECT UNFIT UNUSABLE SUSPECT UNFIT
RECEIPT DISPATCH BAL DATE REFERENCE
*Represents loan repayment from PVO/NGO; therefore, although the same shipment #, it is stacked separately.
Warehouse Commodity Status Reports are essential for each warehouse, whether at a port or inland It is crucial for warehouse managers and storekeepers to ensure that Commodity Status Reports (CSRs) are balanced Regular physical inventories play a vital role in maintaining accurate records and inventory management.
In regions with multiple warehouses, each warehouse prepares and submits its Commodity Status Report (CSR) to the regional office, where the logistics section aggregates these reports into a comprehensive CSR When multiple regions are involved, each region sends its aggregated CSR to the field office's logistics section, which compiles them into a country-wide CSR This process ensures that all CSRs are consolidated from local warehouses to regional offices and then to the field office It is essential to prepare CSRs for each donor.
Commodity Status Reports (CSRs) should encompass details on both monetizations and direct food distributions By integrating this information into CSRs, program managers will gain comprehensive insights into the receipts and dispatches of food inventories across all programs.
When a Bill of Lading (B/L) is endorsed to a buyer upon a ship's arrival in the country, and the Supply Chain (SC) does not take actual custody or control of the food, the field office food management staff should refrain from entering these tonnages in the consolidated Consolidated Status Report (CSR) Since SC does not assume custody, there is no justification for including these tonnages in the CSR Instead, field offices will report these tonnages in their regular financial reporting and Annual Return.
Project Information reports prepared for SC/USA’s International Program
When country offices manage food intended for future monetization, it is essential for warehouse managers and storekeepers to document dispatch details to buyers on the Commodity Status Reports (CSRs) This ensures accurate tracking and accountability of food distribution.
Monetization line in the Distributions and Dispatch Section of the Report.
To reduce the reporting burden on field offices, it is recommended that they request the CSR to serve as a substitute for other commodity reports submitted to various donors.
2 Guidelines for Preparation of CSRs
The SC/USA CSR form is adapted from a report required by AID’s Bureau of Humanitarian Affairs, Office of Food for Peace for PL 480 Title II programs.
CSR should be reported in kilograms.
Fill in the Physical Inventory at the beginning of the reporting period (A) This inventory must be based on actual counts.
During the specified period, it is essential to record all receipts accurately This includes documenting arrivals based on the provided documentation, such as the Bill of Lading (B/L) or waybill For instance, if a B/L indicates the arrival of 6,000 bags of wheat, each weighing 50 kg, this quantity should be recorded in section B.1 Conversely, if the same amount is received from a warehouse, it should be reported in section B.5.
Add up and Report total receipts (C)
Record all Distributions during the period to projects and dispatches for monetization and to other warehouses (D 1-7)
Add up and Report total distributions and dispatches (E)
Calculate the Balance According to Documentation (ledgers, B/L, survey reports, waybills) (A+C-E=F)
Report the Physical Inventory at the end of the reporting period (G) This inventory must be based on actual counts.
The report outlines the total discrepancies between the documented balance and the physical inventory at the end of the month for section (H) Additionally, it provides a detailed breakdown of the total in section H across lines H.1 to H.4, which encompass both losses and loans that have been issued and subsequently repaid.
Report total of Differences Accounted For also on line I.
Total of Differences accounted for (I) plus the end of the month physical inventory (G) must reconcile with the Balance According to Documentation (I+G=F)
If the sum of I and G does not equal F, the discrepancies should be recorded under the Unaccounted for Difference line J It is essential for warehouse managers, storekeepers, commodity program accountants, and logistics personnel to submit written explanations for any unaccounted differences Additionally, the consolidation of Customer Service Reports (CSRs) is necessary for accurate record-keeping.
Commodity program logistics staff in regional and/or field offices should complete CSRs in the same way that individual warehouses complete reports, except that staff:
During the CSR reporting period, it is essential to verify whether food dispatched from ports is actually received at inland warehouses If there is no record of receipt, such as a waybill from the receiving warehouse, the dispatched food should be included in the physical inventory of the port warehouse This practice is crucial for preventing double counting of inventories.