Materials Subsidiary Records
A perpetual in enters system enters each increase and each reduction of inventory to maintain up-to-date material records. These records, in either hard-copy or electronic form, constitute a subsidiary ledger controlled by the materials account in the general ledger. In addition to showing quantity and price for each kind of material received, issued, and on hand, the records commonly detail the account number, description or type of material, location, and maximum and minimum quantities to carry. New materials records are created and old ones are deleted as changes occur in the kinds of materials carried in stock. The record arrangement parallels the familiar debit, credit, and balance columns, but uses the headings received, issued, and inventory. (Examples are shown in the discussion of materials costing methods in the appendix to this chapter.) Additional columns can be added to record receiving report numbers and materials requisition numbers.