Indian Railway Codes and Manuals-Stores code- Vol-II-Chapter-16 (XVI)
RETURNED
STORES
1601. The following procedure for returned stores applies
to all departments, other than those workshops to which stores depot and Stores
and Workshops Accounts Office are attached and for which the procedure is laid
down in paragraphs 1539 to 1547. All stores which have been previously issued
for the services of the railway and are no longer required on a work should, in
the absence of special instructions to the contrary, be returned to the stores
depots. If there is more than one stores depot on a railway, the Controller of
Stores may nominate the depot or depots to which particular classes of stores
may be returned and advise the various railway departments accordingly. In
doing this he should have in view the depot most suitable for the final
disposal of the returned stores, either by reissue to consumers, or by
reclamation, or sale by auction, as the case may be.
1602. Advice Notes.—The Officer returning stores to
stores depots should prepare Advice Notes in Form (S. 1539) in six foils by
carbon process. Separate Advice Notes should be prepared for each class and for
new, secondhand and scrap stores. When the Officer returning the stores is
unable to suggests the rates in the Advice Notes, it will be the duty of the
divisional or district Officer to have this done before passing on the
documents to the Depot Officer, as laid down in paragraph 1603. In the case of
scrap, the classification prescribed in the schedule of rates for different
classes of scrap should be strictly observed.
1603. General Criterion for Valuation.—The valuation of
material returned from works particularly of specialised material, is difficult
problem. Engineers and other parties returning stores and plant are prone to
claim (and provide in their estimates for) as large a credit a possible for
them. But the value of such materials to the railway depends largely on the
extent to which they can be made use of. Railway Administrative Officers should
examine in consultation, if necessary, with the Controller of Stores or whoever
may be thought likely to take the material over, the sums provided in estimates
as credits for returned material and see that the theoretical value of the
material based on its further life is ignored, and the estimate is based instead
of the possibilities of the material being used again within a reasonable
period after return. If there is no likelihood of the material or plant being
required again within a reasonable
period of return, the credit allowed in the estimate for returned value should
be kept within the figure likely to be realised for it as obsolete material or
as scrap.
1604. Disposal of the Foils of Advice Notes.—One foil of
the Advice Note should be retained by the subordinate returning the stores to
the stores depot as his office copy, three foils (the 2nd, 3rd and 4th) should
be sent to the depot direct along with the Railway Receipt. Of the remaining
two copies, one copy (the 5th) should be sent to the Accounts Officer, Stores,
and the other (6th) to the Divisional or District Officer through the immediate
superior of the subordinate returning the stores.
1605. Departmental Register of Advice Notes.—The Advice
Notes (6th foil) should be carefully examined in the divisional or district
office to see that they have been correctly prepared. They should then be
listed in a Register of Advice Notes for Returned Stores maintained in the form
shown below.
1606. A separate page of this register should be allotted
to each returning officer or subordinate as may be found convenient. If the
particulars furnished by the subordinates returning the stores regarding
nomenclature, rates & c., are found to be incomplete, the Advice Notes (S.
1539) (6th foil) should be completed in the divisional or district office in
these respects. The Advice Notes (6th foil) should then be forwarded to the
depot to which the stores have
been returned.
1607. The disposal of Advice Notes and the maintenance
of the register (S. 1605) mentioned above may be entrusted to the Accounts
Office, if any, attached to the division or district. The Register of Returned
Stores (S. 1605) should be inspected frequently to see that there is little
avoidable delay on the part of the stores depots in acknowledging the stores.
Any cases of omission to acknowledge the stores and/or to afford credit for the
same within one month
of the Advice Notes should be taken up with the Depot and Accounts Officer.
1608. Procedure in Stores Depot.-Returned
Stores should be dealt with in the Store depot in its Receipt Section. The work
should, if possible, be divided between two sub-sections, one section dealing
with the receipt of the material and the the sub-section being responsible for
the accounting for it.
1608. Depot Register of Advice
Notes.—As soon as the Railway Receipts and the Advice Notes (the 2nd 3rd
and 4th foils) are received in the depot direct from the consignors, the Advice
Notes should be entered in a register and serially numbered, the serial number
being entered at the same time on the top right hand corner of the Advice Note
in red ink or by means of a numbering machine. This register (Form S. 1609)
should show the following particulars, viz,—
1. Serial Number.
2. Date of receipt of Advice Note in Depot.
3. Number and date of Advice Note.
4. Number and date of Railway Receipts.
5. Wagon number.
6. Designation of subordinate returning stores.
7. Particulars of stores returned (a) Description (b) Quantity.
8. Date on which stores are received in the depot.
9. (a) Date on which copies of Advice Notes (6th foil) are returned duly
acknowledged to the Divisional/district office (b) Receipt order number and
date.
10. Date on which stores are posted in the numerical ledger.
1610. On receipt of the stores in the depot, these
should be checked with the Advice Notes received direct from the subordinate
returning the stores, the date of receipt in column (8) of the register (S.
1609) and the quantities actually received entered in the prescribed column of
the Advice Notes against each item of stores as shown therein. Particular care
should be taken to see that the quantities entered in the columns
"quantity returned" and "quantity received"
agree. In case there are any differences, the depot officer should show the
quantity received in the unit adopted by the consignor in addition to that in
which the same will be accounted for the depot, so that the returning officer
will be able to investigate discrepancies. In such cases brief reasons should
be stated in the Advice Notes, and the returning officer should be advised of
the differences, without delay. On no account should there be any lumping up of
entries in the Advice Notes. The depot should then check the classification
stores nomenclature, price list number & c., complete all the foils in
every respect and inform the divisional or district office of any differences
that may come to light.
1611. Inspection and Valuation.—The material should then
be inspected and valued by the gazetted officer of the stores depot. In the
case of store, the depot's stock of which has already been declared as dead
surplus, scrap value only should be afforded. Second-hand serviceable stores
will be credited at half the price list rate for new stores except in those
cases where a different method of valuation has been authorized (paragraphs
1612 to 1617). If the
officer returning the stores does not accept the valuation by the Depot Officer
the matter should be referred to the Ganeral Manager whose decision will be
final.
1612. Valuation of Second-hand Rails.—Each railway
should annually fix a rate for second-hand rails returned to stores; but in the
case of second-hand rails released from existing lines and supplied to new
projects (whether financed by the Central Government or not ) or to other
administrations, their price should be taken as 65 % of the market price of new
rail.
1613. Valuation of plant & Machinery.—(a) In the
case of serviceable plant & machinery their value should be determined
according to the following formula viz., R-N/L (R-S) where R is the present day
price of new boiler or pump, N is the age of article, L is the estimated life
of the same and S is the scrap value. The scrap value should be pre-determined
for each class of plant & machinery. When the article is repaired, the cost
or repairs should be added to the book value arrived at using the above
formula. If the article is condemned and cut up in the workshops, a work order
should be allotted to which should be charged the book value of the article and
the cutting up charges. The credit for scrap and any serviceable parts should
be booked to the work order. Any outstanding balance should be adjusted against
the department which returned the article.
(b) In case of Machinery & Plant, the returning Officer should furnish the
following information in the advice note.
(i) Scurce of receipt.
(ii) Maker's name.
(iii) Year of Purchase.
(iv) Original Cost.
(v) Period it has been in use.
(vi) Whether it is good working order for sale or for offer to other railways.
(vii) Reason for return.
(viii) Whether the material is likely to be redrawn in the near future. If not,
proposal if any, with regard to its disposal.
1614. Valuation of Boiler Tubes.—In the case of boiler
tubes removed from engine boiler and returned to the stores depot from running
sheds or workshops, it cannot be determined whether they are serviceable or not
unless they are ""rumbled". They should not therefore be
credited at half value of new stores but at scrap value. When the tubes have
been rumbled the serviceable tubes should be held as second-hand stock at half
the value of new stores. The difference between the book value of the
"unrumbled" tubes, plus the cost of rumbling and the second-hand
value of the tubes when taken into stock after rumbling should be credited to
Stock Adjustment Account.
1615. Valuation of Repairable Items—Advice notes for
material which though unserviceable, could after reconditioning or repairs be
rendered serviceable and would thus be useful for another term of life, should
be accepted as "Repairable." Credit should be afforded by the Stores
Depot for wholly and partly ferrous articles at 1/3rd and non-ferrous articles
at 1/2 of the current book rate for the new articles. Such articles would
generally be stock items of locomotive, carriage and wagon parts and fittings.
Separate ledger cards under their relevant price list number affixing the
correct category code to the price list number of the new article, should be
maintained for repairable ones. As soon as it is desired or advantageous to do
so, the Stores Depot should get the repairable material made serviceable for
issue to consuming department for adding to serviceable stock instead of
ordering for new materials.
The repaired articles should be taken on books at the book rate for repairable
ones plus the actual cost of repairs or average cost of repairs, as convenient.
No distinction should be made between new and repaired articles in the matter
of storage, and the issue prices of the materials should be the same.
Note :—In case the stock of repairable article exceeds the annual consumption
of the made and new repaired, articles investigations should be necessary
action taken for the disposal of the excess stock.
1616. The actual cost of repairing or reconditioning
such material will rarely be identical with the difference between the new
value and the rate at which the material has been taken into stock before
repairs.
The difference should be debited or credited to the appropriate Revenue Head of
Account for overcharges and under-charges manufacture and repairs. A watch
should be kept on such adjustments and where ever it is found that they are
very heavy, the rates for repair should be reduced or increased by a suitable
percentage to make them accord as near as possible with the actual as indicated
by past transactions.
1617. Non-stock Repairable Items.—In case of non stock
items, such materials should not be reclaimed or repaired until a requisition
is received for the material.
1618. Delay in Receipt of Stores.—In the event of any
stores not arriving within 14 days after receipt of the Advice Note (S. 1537)
the Depot Officer should take up with the traffic department and inform the
subordinate returning the stores at the same item If such stores are not
received within 30 days after submission of the report, the Depot Officer
should take necessary action according to the rules for stores lost in transit,
vide paragraphs 2128 to 2138.
1619. Stores Received in Aadvace of Documents.—If any
returned stores are received in a depot before arrival of the Advice Note, the
fact should at once be reported to the subordinate returning the stores, giving
details of the stores received, the station of despatch and the number and date
of the Railway Receipt. The particulars of the stores should also be entered in
columns (4), (5), (6), (7) and (8) of the Depot Register of Advice Notes (S.
1609). If the Ad vie Notes are not received within a week after the submission
of the above report, a special report should be made to the divisional or
district Officer. If the concerned Advice Notes are cot received within 14 days
after the arrival of the stores, these should be dealt with as "excess
found in stock" and accounted for accordingly.
1620. Posting of Numerical Ledgers—The Depot Officer,
after having the necessary enteries made in the numerical ledgers bin cards as
well as in the Depot Register of Advice Notes (S. 1609) should retain one copy
of the Advice Note (2nd foil) as his cilice record and send the two copies (3rd
and 4th foil) duly completed in all respects to the Accounts Officer, Stores.
1621. Disposal of Receipt (6th) Foil—The sixth foil of
the Advice Note should also be sent by the Depot Officer duly receipted to the
divisional or district officer concerned to be retained as the latter's office
record after making the entries in columns 7 to 9 of the Departmental Register
of Advice Notes (S. 1605). He should take up with the depot and returning
officers any discrepancies in quantities (vide columns 5 and 9 of the Register)
if the reason
given on the Advice Notes are not satisfactory.
1622. Accounts Register of Advice Notes.—The three
copies of the Advice Note received by the Stores Accounts Officer will be dealt
with in his office according to the following procedure. On receipt in the
Stores Accounts Office of the 5th foil direct from the returning officer, the
particulars of the Advice Note should be entered in a register (S.1622)
containing the following columns :—
1. Number and date of Advice Note.
2. Designation and station of subordinate returning stores.
3. Date of receipt of 5th foil.
4. Date of Receipt of 3rd and 4th foil.
5. Receipt order No. & Date.
6. Date and No. of Advice of credit.
7. Remarks.
A separate portion of the register should be reserved for each sub-ordinate or
division or department with separate pages for each date or month.
1623. This register will enable the Stores Accounts
Officer to watch the prompt accountal of returned stores by the Depot officer
concerned. The Stores Accounts Officer should inspect this register once a
fortnight to see that there is no avoidable delay on the part of the Depot
O0ic«r in acknowledging receipt of returned stores and accounting for them. Any
delay in accountal should be promptly taken up with the Depot Officer. Any
items outstanding for over
three months should be extracted in a summary to avoid their being lost sight
of and a special report of such items should be made to the Controller of
Stores.
1624. The Pairing of Advice Notes.—The 3rd and 4th foils
received from the depot should be paired with the 5th foil received direct from
the returning officer, and the date of their receipt entered in the register S.
1622.
1625. Pricing of Advice Notes and Posting of Priced
Ledger.—The 3rd and 4th foils should then be priced at the valuation fixed by
the depot officer. The 4th foil will be used for posting the priced ledgers and
kept as the record for the Stores Accounts Office.
1626. Advice of Credits.—Advice of Credit will be
prepared & sent to the Divisional/District Officer. The number and date of
the Advice of Credit should be noted in the Accounts Register of Advice Notes
(S. 1622) against the entries of the Advice Notes included in the Advice of
Credits. The Advice of Credits with the 3rd foil as supporting vouchers and the
corresponding 5th foils should then be sent to the divisional or district
officer concerned.
1627. Deleted.
1628. Procedure in the District or Divisional Office.—On
receipt of the copies of the Advice Notes along with the Advice of Credit from
the Stores Accounts officer in the division or district office, the 5th foil
should be transmitted to the subordinate concerned after noting on it the fact
of credit having been received. The Advice of Credit supported by the 3rd foil
should then be carefully checked with the noted in the Departmental Register of
Advice Notes (S. 1605).
The Divisional or workshop Accounts Officer concerned will be responsible for
taking up with the Stores Department any discrepancies in quantities, shown in
the copies of the Advice Notes (3rd foil) as compared with the corresponding
entries in column 9 of the register S. 1605. (When there is no Accounts officer
attached to the office of the head of the returning department, this check
should be exercised by his own office). Necessary adjustments should then be
made by debiting "Transfers Stores" and crediting the head of account
concerned. In case where there is no Accounts Officer attached to the office of
the department returning the stores, the latter should send the Advices of
Credit to the Accounts Officer concerned for necessary adjustment.
1629. Freight on Stores returned to Stores Depots.—In
the case of materials returned from revenue maintenance, the freight should be
debited to the head "Carriage of Revenue Stores" under the various
revenue abstracts of the returning departments. In the case of materials
returned from special works, the freight should be debited to the estimate of
the work concerned, i.e. Capital, Depreciation Reserve Fund or Revenue as the
case may be. But if the stores are returned on account of incorrect issue by
the Stores Department, the freight should be charged
to the head K. 693.
Multiple choice questions:
Question
1:
How should repairable material,
which could be rendered serviceable after reconditioning or repairs, be valued
for ferrous articles? a) At full book rate
b) At 2/3rd of the current book rate
c) At 1/3rd of the current book rate
d) At 1/2 of the current book rate
Answer: c) At 1/3rd of the current book rate
Question
2:
How should non-ferrous repairable
articles be credited? a) At full book rate
b) At 2/3rd of the current book rate
c) At 1/3rd of the current book rate
d) At 1/2 of the current book rate
Answer: d) At 1/2 of the current book rate
Question
3:
What should be done with repaired
articles in terms of storage and issue prices? a) They should be stored
separately and issued at a lower price
b) They should be stored with new articles and issued at the same price
c) They should be stored separately and issued at a higher price
d) They should not be issued
Answer: b) They should be stored with new articles and issued at
the same price
Question
4:
What action should be taken if the
stock of repairable articles exceeds the annual consumption? a) Increase the
stock
b) Investigate and dispose of the excess stock
c) Return the stock to the supplier
d) Ignore the excess stock
Answer: b) Investigate and dispose of the excess stock
Question
5:
What should be done if stores do not
arrive within 14 days after receipt of the Advice Note? a) Wait for another 14
days
b) Take up with the traffic department and inform the subordinate returning the
stores
c) Consider the stores as lost
d) Return the Advice Note to the sender
Answer: b) Take up with the traffic department and inform the
subordinate returning the stores
Question
6:
What should be done if returned
stores are received in a depot before the arrival of the Advice Note? a) Store
the items without documentation
b) Report the fact to the subordinate returning the stores and enter details in
the Depot Register of Advice Notes
c) Ignore the received stores
d) Send the stores back to the sender
Answer: b) Report the fact to the subordinate returning the stores
and enter details in the Depot Register of Advice Notes
Question
7:
Where should the Depot Officer send
the 3rd and 4th foils of the Advice Note after making necessary entries? a) To
the subordinate returning the stores
b) To the Divisional or District Officer
c) To the Accounts Officer, Stores
d) To the central depot's records
Answer: c) To the Accounts Officer, Stores
Question
8:
Who is responsible for inspecting
the register of Advice Notes to ensure there is no avoidable delay in
acknowledging receipt of returned stores? a) The Depot Officer
b) The Controller of Stores
c) The Stores Accounts Officer
d) The subordinate returning the stores
Answer: c) The Stores Accounts Officer
Question
9:
How often should the Stores Accounts
Officer inspect the register of Advice Notes? a) Daily
b) Weekly
c) Fortnightly
d) Monthly
Answer: c) Fortnightly
Question
10:
What should be done with items
outstanding for over three months in the register of Advice Notes? a) They
should be ignored
b) They should be summarized and reported to the Controller of Stores
c) They should be marked as lost
d) They should be sent back to the sender
Answer: b) They should be summarized and reported to the Controller
of Stores
Question
11:
What should be done with the 5th
foil after noting the credit received? a) It should be retained as an office
copy
b) It should be transmitted to the subordinate concerned
c) It should be sent back to the Stores Accounts Officer
d) It should be destroyed
Answer: b) It should be transmitted to the subordinate concerned
Question
12:
How should the freight for materials
returned from revenue maintenance be debited? a) To the estimate of the work
concerned
b) To the head "Carriage of Revenue Stores" under the various revenue
abstracts
c) To the central depot's records
d) To the subordinate returning the stores
Answer: b) To the head "Carriage of Revenue Stores" under
the various revenue abstracts
Question
13:
To which depot should returned
stores be sent when there are multiple stores depots on a railway? a) Any depot
b) The nearest depot
c) The depot nominated by the Controller of Stores
d) The central depot
Answer: c) The depot nominated by the Controller of Stores
Question
14:
How many foils of the Advice Notes
(Form S. 1539) should be prepared for returning stores? a) Three
b) Four
c) Five
d) Six
Answer: d) Six
Question
15:
What is the main criterion for the
valuation of returned material from works? a) The original purchase price
b) The theoretical value based on further life
c) The extent to which the material can be reused within a reasonable period
d) The cost of returning the material to the depot
Answer: c) The extent to which the material can be reused within a
reasonable period
Question
16:
Which department should retain one
foil of the Advice Note when stores are returned? a) The Accounts Office
b) The Stores Department
c) The subordinate returning the stores
d) The Divisional Office
Answer: c) The subordinate returning the stores
Question
17:
What is the purpose of the 6th foil
of the Advice Note? a) It is retained by the returning subordinate as an office
copy.
b) It is sent to the Accounts Officer, Stores.
c) It is sent to the Divisional or District Officer through the immediate
superior.
d) It is destroyed after use.
Answer: c) It is sent to the Divisional or District Officer through
the immediate superior.
Question
18:
Where should the Advice Notes be
listed after being examined in the divisional or district office? a) In a
spreadsheet
b) In a Register of Advice Notes for Returned Stores
c) In a logbook
d) In the central depot's records
Answer: b) In a Register of Advice Notes for Returned Stores
Question
19:
What should be done if the
particulars furnished by subordinates regarding nomenclature and rates are
incomplete? a) The Advice Notes should be sent back for correction.
b) The incomplete particulars should be filled in by the divisional or district
office.
c) The Advice Notes should be discarded.
d) The stores should not be returned.
Answer: b) The incomplete particulars should be filled in by the
divisional or district office.
Question
20:
How should the receipt of stores be
managed in the depot? a) By the returning subordinate
b) By the Receipt Section of the depot
c) By the Accounts Office
d) By the workshop foreman
Answer: b) By the Receipt Section of the depot
Question
21:
How should the Depot Register of
Advice Notes be managed? a) It should be maintained by the returning
subordinate.
b) It should be managed in the central office.
c) It should be entered as soon as Railway Receipts and Advice Notes are
received.
d) It should be managed by the workshop foreman.
Answer: c) It should be entered as soon as Railway Receipts and
Advice Notes are received.
Question
22:
Who should inspect and value the
material in the depot? a) The returning subordinate
b) The Divisional Officer
c) The gazetted officer of the stores depot
d) The workshop foreman
Answer: c) The gazetted officer of the stores depot
Question
23:
At what value should second-hand
serviceable stores be credited? a) Full price list rate for new stores
b) Half the price list rate for new stores
c) Scrap value
d) Original purchase price
Answer: b) Half the price list rate for new stores
Question
24:
What rate should be used for
second-hand rails supplied to new projects? a) 50% of the market price of new
rail
b) 60% of the market price of new rail
c) 65% of the market price of new rail
d) 70% of the market price of new rail
Answer: c) 65% of the market price of new rail
Question
25:
What formula is used to determine
the value of serviceable plant and machinery? a) R-N/L (R-S)
b) R+N/L (R-S)
c) R-N/L (S-R)
d) R*N/L (R-S)
Answer: a) R-N/L (R-S)
Question
26:
How should the difference between
the book value of "unrumbled" tubes and their second-hand value be
credited? a) To the returning officer's account
b) To the Stock Adjustment Account
c) To the central depot's records
d) To the Divisional Office
Answer: b) To the Stock Adjustment Account
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