Procurement is not only associated with sourcing, but also with supplier relationship, contract management and asset management. Goods and service receiving may sound simple, but it is the first step to check the supplier performance. In this post, we suggest a sample procedure for receiving goods and recording the performance.
An organisation may purchase goods for direct consumption (such as cartridges for photocopying machine) or for stock. In either way, the receiving procedure is not much different from each other.
Before any receipt, the organisation should assign a receiver. A procurement officer, an employee from user department or warehouse can take this position. The receiver must know the delivery schedule.
Then the supplier’s driver or a courier delivers the goods at the buyer’s premise. At the time of delivery, the receiver must be present. At first, the receiver requests the driver to show relevant documents, including delivery note and purchase order. The receiver must cross-check the supplier’s delivery note with his copy of the purchase order on the number, date, time, quantity and goods description.
Now the receiver oversees the process of unloading, counts and inspects the goods. In most of the time, thorough inspection is not practical, so the receiver can superficially check the packages and note any visible errors, such as scratch or damp. Further inspection can be conducted later by dedicated quality control officers.
Any excess quantity and non-conformed goods should be rejected. If the driver hurriedly leaves due to busy schedule, the receiver should note the excess and/or error on the delivery note and goods receipt note. Later, he should store the damaged and excess goods in a separated area of the warehouse. These goods shall be returned to the supplier later.
Finally, the receiver must sign on the delivery note/ goods receipt note and keep a copy of it. This signed document shall be sent back to accounting department to initiate payment.
Also, don’t forget to input the receipt data on ERP system or inventory management software. We would recommend to use ERP system since this data can also be used for payment processing and supplier performance management.
Unlike goods, services are intangible and perishable, which means services are produced and consumed simultaneously. An organisation may purchase services, such as travel, training, maintenance, consultant, etc as frequent as it purchases goods.
Service cannot be considered as delivered until the supplier fully performs it. So service receipt note must only be signed AFTER the service is completely undertaken by the supplier. Normally, the receiver (in service delivery, this role should be taken by the user) and the supplier mutually sign on the receipt note.
Sometimes, service needs quality inspection too, such as maintenance. The service is deemed as delivered once the in-charge quality control officer inspects and accepts the quality. In this case, the quality control officer needs to sign on the receipt note too.