Materials Abstract: Definition and Meaning
To determine the cost of materials used on a particular job or work order, the following aspects are usually recorded and analyzed:
- Material requisitions
- Material returned notes
- Material transfer notes
The recording sheets specially meant for this purpose are known as materials abstracts or materials issue analysis sheets.
Specimen/Format of Materials Abstract
Materials abstracts are prepared periodically (e.g., weekly, fortnightly, or monthly).
Benefits of Materials Abstract
The most important benefits of materials abstract are:
- Transactions can be passed in the stores ledger directly from the materials abstract
- The materials cost of each job can be calculated easily