Materials ledger card

A materials ledger card is a manual record of the units of raw materials flowing through a warehouse. The card typically contains information about the following transactions:

  • Purchases of raw materials from suppliers (recorded when received)

  • Transfers of raw materials from the warehouse to the production floor

  • Receipts back from the production floor for excess units not used

  • Adjustments to on-hand balances based on the outcome of periodic inventory counts

The card contains a running balance of the on-hand units of each type of inventory. Materials ledger cards are useful in the following situations:

  • To keep a record of the on-hand balance of each type of raw material, to ensure that there is enough to support planned production activities

  • To maintain a record of the usage volumes of each raw material, which can assist with the timing and amount of future purchases

  • To have a baseline document of usage levels, in case there is an investigation into missing units

Materials ledger cards are not used in computerized warehouse management systems, and so are not commonly found in organizations having more advanced systems.

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