Stock Register Format with FIFO Valuation — Template
Quantitative Stock Register — FIFO Valuation
Entity: {{entity_name}} | Financial Year: {{fy}}
Principal items covered by this register: {{principal_items}}
1. Purpose and Statutory Basis
This register maintains item-wise quantitative records of receipts, issues and balances, valued on FIFO. It is the source record for the quantitative details the tax auditor reports in Form 3CD clause 35 — clause 35(a) for a trading concern (principal items of goods traded) and clause 35(b) for a manufacturing concern (principal items of raw materials, finished products and by-products). Per the ICAI Guidance Note, principal items are broadly those constituting more than 10% of aggregate purchases, consumption or turnover — maintain this register at least for those, and reconcile the year-end balances to the inventory in the financial statements and to the physical count.
2. Item-wise Register (one sheet per item)
Item: ____________________ | Unit of measure: ________ | Item code: ________
| Date | Doc ref (GRN / invoice / issue slip) | Qty in | Rate (₹) | Value in (₹) | Qty out | FIFO rate (₹) | Value out (₹) | Balance qty | Balance value (₹) | FIFO layers note |
|---|
| Opening balance | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Closing balance | | | | | | | | | |
- Doc ref: every movement needs a document — goods receipt note or purchase invoice for receipts, issue slip / delivery challan / sales invoice for issues. An entry without a document reference will not survive audit.
- FIFO rate: issues are priced from the oldest unconsumed receipt layer first. When an issue exhausts one layer and eats into the next, split the issue line across the two rates and say so in the layers note.
- FIFO layers note: record the open layers making up the balance — e.g. '120 @ ₹52 (GRN 214), 80 @ ₹55 (GRN 231)'. The balance value must always equal the sum of the open layers; that identity is the self-check of the register.
- Balance columns: strike a running balance after every entry, not just at month-end — clause 35 shortage / excess is only measurable against a continuous record.
3. Annual Quantitative Summary — feeds Form 3CD Clause 35
Trading items — clause 35(a):
| Item | Unit | Opening stock | Purchases | Sales | Closing stock | Shortage / excess | Remarks |
|---|
| | | | | | | |
| | | | | | | |
Manufacturing items — clause 35(b) (raw materials; repeat for finished products and by-products, substituting production for consumption):
| Item | Unit | Opening stock | Purchases | Consumption | Sales | Closing stock | Yield of finished product | Shortage / excess |
|---|
| | | | | | | | |
| | | | | | | | |
- Shortage / excess: the balancing figure of the quantity column — investigate and record the reason (normal process loss, evaporation, breakage, count difference) before the tax auditor asks. Clause 35 reporting is made to the extent the records make it practicable; a register maintained through the year is what makes it practicable.
- Tie-out: closing quantities and values here must agree with the inventory in the financial statements, the physical verification records (CARO 2020 clause 3(ii)(a) — physical verification of inventory by management, with discrepancies of 10% or more in the aggregate for each class to be reported), and the stock statements submitted to lenders where working capital is availed.
4. Valuation Basis
Inventories are valued at the lower of cost and net realisable value, per AS 2 / Ind AS 2. Cost is assigned on FIFO in this register; both standards permit FIFO or weighted average (LIFO is not permitted), and the formula chosen must be applied consistently for similar items from period to period. Cost includes purchase cost (net of recoverable taxes such as GST ITC availed) plus conversion and other costs incurred in bringing the inventory to its present location and condition. Where NRV falls below FIFO cost at year-end (damaged, obsolete or slow-moving items), write the item down and note the basis against it in Section 3.
| Name | Signature | Date |
|---|
| Prepared by | {{prepared_by}} | | 31 July 2026 |
| Reviewed by | {{reviewed_by}} | | |
