Receiving Procedures

RECEIVING PROCEDURES

AUTHORIZED RECEIVING POINTS

Each department is responsible for receiving goods. To be effective, each department must:

1.Limit the points to which goods may be delivered to avoid misdelivery of goods, lost or stolen goods and lost or misplaced documentation.

2.Limit the number of people authorized to sign for deliveries and ensure that they are aware of the correct receiving procedures, as described in this section.

3.Whenever possible, ensure that three different individuals are involved in the receipt/payment process. However, a minimum of two different individuals is required.

One to sign/authorize the requisition.
One to physically inspect and sign for the goods received
One to authorize payment (may be the same person as "a" above).

The ordering department is obligated to accept delivery of any merchandise which has been ordered in accordance with purchasing procedures. If there is a change regarding the need for the items, the department should immediately contact Purchasing to make other arrangements. ONLY PURCHASING HAS THE AUTHORITY TO MODIFY OR CANCEL PURCHASE ORDERS. It should be realized that there may be a restocking charge if the items must be returned through no fault of the supplying vendor. The City’s failure to accept and pay for ordered goods is a breach of contract.

RECEIVING GOODS FROM THE CARRIER

1.Avoid accepting delivery of any merchandise until adequate identification from the packaging or delivery tags is obtained. A purchase order number or other suitable identification indicating that the merchandise should be delivered to the department, must be in evidence before the shipment is accepted.

2.Sign only for the number of boxes or parcels which are received from that carrier and which are listed on the delivery tag (carrier’s receipt) which accompanies the delivery. NOTE: The receiver is not signing as to the condition of the merchandise inside the box or parcel, but should note any exterior damage, including unsealed packaging, on the delivery tag before signing. The receiver should not refuse a shipment because of apparent damage. This may result in storage fees to the City.

3.In cases of known damage (apparent at the time of delivery):

4.Note on both copies of the delivery tag (carrier’s receipt) "case damaged in shipment" and , if the item is visible and the damage is visible, also include "item visibly damaged".

5.Obtain signature from carrier on both copies of the delivery tag before signing for receipt.

6.Return one copy of the receipt to the carrier.

7.Retain a copy of the receipt for Purchasing Division files.

INSPECTING GOODS AFTER DELIVERY

1.Inspect the merchandise promptly after receipt. Inspections of items received and determination of compliance with the ordering description or specifications are the responsibilities of the ordering department.

2.Check merchandise received against the packing slip and the purchase order.NOTE: If copies of invoices are received, they should be immediately forwarded to the person in the department who is authorized to make payments.

3.Post any partial deliveries received on a copy of the purchase order.
The receiver should keep all packing materials and merchandise and report the damage to the vendor immediately. If the problem is not resolved, contact Purchasing.

WARNING: Do not destroy damaged item(s) or any packaging materials.

4.Notify the vendor and the Purchasing Division if the quantity received is different from the quantity stated on the purchase order and no back order quantity is shown on the packing slip.

5.Purchasing need not be notified when the purchase order quantity states that the quantity is approximate or states that an over-shipment of a certain amount is acceptable and the quantity received falls within that range. In this event, the quantity on the receiving copy of the purchase order should be changed by the receiving department to agree with the quantity actually received.

6.If unable to resolve discrepancies with the vendor, notify Purchasing immediately.

LOST/DAMAGED GOODS

1.Usually, terms are FOB Destination and the seller holds title during transit. In this case, the receiving department shall notify the vendor of the loss, ask for replacement goods and give the vendor information to aid in filing a claim with the carrier. There will be no additional cost to the City. FOB Destination is the City’s preferred method of shipment because the City’s liability for lost or damaged goods is limited.

2.If shipping terms are FOB Shipping Point, the City owns the goods in transit. Therefore, the receiving department will file a claim with the carrier. If the goods must be replaced or repaired in the meantime, the City will have to pay the additional cost pending reimbursement by the carrier for the loss or damage.

INCORRECT GOODS

1.If the goods shipped do not comply with the purchase order, the receiving department will as the vendor to bring them into compliance.

2.If the vendor fails to do so within a reasonable time, the receiving department will notify Purchasing. Purchasing will notify the vendor of the breach of contract.

3.It is the receiving department’s responsibility, to notify Purchasing of the need to charge the defaulting vendor with any additional cost experienced by the City due to the breach of contract.

Reference: http://www.visaliapurchasing.org/pol_div_chapters/chap_12.html

Sharing Time: During my attachemnt period, I have been touched on receving procedures, my company always receives the containers 1-2 times per month. The most important and complex task is to check the items quantity and qulity, to see whether it is correct or not. But since my company is a small company, all the jobs are done by manual. So the accuracy of the receiving job may not be 100% and they take a long time to do it, so it's quite a waste of time. But the procedures they are following is just like what the above article mentioned, so I think the procedures are quite correct.