|Basic Accounting for Credit and Savings Schemes (Oxfam, 1996, 96 p.)|
|Chapter 9: Stock|
Instead of making loans, some credit schemes provide goods on credit to participants. For example, an animal traction project may receive a grant which it uses to purchase ox-ploughs and bean seeds. It then sells the ploughs and seeds to local groups. Some groups are able to pay for their ploughs or seeds immediately. Others are allowed to pay later: they receive their ploughs and seeds on credit.
Items which a project holds for resale are known as stock. Once a project is handling stock the project leaders should consider the following aspects of stock management:
· record keeping;
· the value of the stock;
· the condition and useful life of the stock (particularly if the goods held in stock are perishable).
The management committee should appoint a storekeeper to handle stock movements and record keeping. If the project is small the book keeper may also be responsible for the stock.