CFR > Title 17 - Commodity and Securities Exchanges > CHAPTER II—SECURITIES AND EXCHANGE COMMISSION > PART 256—UNIFORM SYSTEM OF ACCOUNTS FOR MUTUAL SERVICE COMPANIES AND SUBSIDIARY SERVICE COMPANIES, PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 > 256.163—Stores expense undistributed.

256.163—Stores expense undistributed.

(a) The service company shall utilize this account, where appropriate, to include the service cost of labor and expenses incurred with respect to centralized procurement activities rendered to associate or nonassociate companies.
(b) (1) Supervision of purchasing and stores department to extent assignable to materials handled through stores.
(2) Purchasing department activities in checking material needs, investigating sources of supply, analyzing prices, preparing and placing orders, and related activities to extent applicable to materials handled through stores.
(3) Unloading from shipping facility and putting in storage.
(4) Inspecting and testing materials and supplies when not assignable to specific items.
(5) Keeping stock records, including recording and posting of material receipts and issues and maintaining inventory record of stock.
(6) Communication service.
(7) Cash and other discounts not practically assignable to specific materials, freight, express, etc., when not assignable to specific items, transportation expense, and excise and other similar taxes not assignable to specific materials.
(c) This account shall be maintained to show the expenses attributable to each associate company through the use of work orders. All expenses of a service company's centralized procurement activities shall be cleared through this account.
(d) Any amounts applicable to fuel costs should be included in account 152, Fuel stock expenses undistributed.