A receiving procedure is required to properly inspect all incoming goods, mark them with tags or labels, and record them as having been received in the inventory management system. Below are some of the keys steps that should be taken in a manual goods receiving procedure:
- Upon receipt of a delivery, received goods should be matched to the description stated on the accompanying delivery note, along with the description on the related purchase order. Major discrepancies can lead to rejection of delivered goods.
- If there is no authorising purchase order and the purchasing department does not issue a waiver, the delivered goods should be rejected.
- An inspection checklist should be used to inspect each delivery. Factors likely requiring review include:
- The quantity received
- Basic quality checks
- Purchase order number
- The date and time of receipt.
- If discrepancies are identified, the corresponding goods should not be booked in and instead be quarantined for further investigation via the Purchasing department and/or Quality department.
- The delivery note should be signed to indicate that the delivery has been inspected and is accepted.
- Identify each item in a delivery and ensure that it is properly labelled with a bar coded tag that includes the item number, quantity and unit of measure. If there is some uncertainty regarding which item number to use, consult with the senior warehouse staff or purchasing department.
- The receiving log should be updated with the date and time of receipt of each delivery, as well as the name of the shipper, supplier, purchase order number and description of goods received.
- A copy of the signed delivery note should be sent to the accounts payable department.
- Note: If a delivery arrives when a physical inventory count is being conducted, the goods should be quarantined in a clearly marked storage area and not recorded until the physical counting process is complete.
Many of these steps, particularly those that require physical data entry or the signing and sending of paperwork are made more efficient with the use of barcoding or RFID systems.
Importantly, Barcoding and RFID tagging ensure goods movements are recorded in the inventory management system in real-time, i.e. there is no delay between the goods being received or moving and the recording of the movement by manual data entry. This significantly improves the accuracy of inventory records.