Receiving Goods - 2000.2

Questions to Consider when Receiving Goods

In accordance with State Administration Manual, Section 3861, receiving staff should always consider the following questions before taking receipt of any shipment:

Includes a packing slip identifying a Purchase Order.

• Is it for this department?
• Is it damaged?
• Is the piece count correct?

In addition, the following questions should also be considered when receiving goods on behalf of the department:

• Does the item require special handling or contain hazardous materials?
• Is delivery significantly late, unsatisfactory or incomplete?
• Does the item comply with the specifications and packaging requirements as defined by the contract, General Provisions or any special provisions of the purchase order?
• Does the delivery require further inspection by another more qualified person?
• Have all the terms listed on the Contract/PO been met and properly documented?
• Are there any take-back requirements when goods are received?

Standard Receiving Package

A standard receiving package should, at a minimum, contain the following documentation and be accessible to both the accounting and purchasing offices for payment and procurement file documentation:

• The invoice or packing slip
• The receiving copy of the Contract/PO
• Non-FI$Cal Users, complete a Stock Received Report (STD. 106)

If the freight terms required the consignee to pay the shipping costs (FOB Origin), the bill of lading/delivery receipt verifying shipping costs must be included as part of the receiving documentation.

Packing Slip

Packing slips must be included in all shipments received by a department.  At a minimum and in accordance with the standard State’s General Provisions, the supplier must provide the following information on the packing slip to ensure departmental receiving staff can verify products being acknowledged as received:

• Purchase Order number as issued by the system
• Item number
• Quantity and Unit of Measure
• Product Part Number
• Description of the goods shipped
• Backorder quantities, if any
• Material Safety Data Sheets

Receiving Stock

FI$Cal Users, the FI$Cal system allows departmental receiving staff to receive stock directly in the system. The receiving process in FI$Cal is considered an approved Contract/PO to record receiving information at the time goods are received.  The receiver will enter the date received, the quantity received, and note any defect in the condition of goods.  Once the goods or services are received and accepted, the information must be entered into the system and work-flowed to the accounting office on the day the goods are received.

A completely filled order is determined by carefully checking the quantity, description, and condition of the goods.

Non-FI$Cal Users, in accordance with State Administration Manual, Section 8422.20, departmental receiving staff must prepare a Stock Received Report (STD. 106) or may use an approved purchase document to record receiving information at the time goods are received.  When a copy of the purchase document is used as a stock received report, the person checking the goods will write in the date received, the quantity received, and note any defect in condition of the goods.  The original stock received report or the purchase document must be forwarded to the accounting office and a copy provided to the buyer to file in the procurement file on the day the goods are received.

The STD. 106 will be stamped or similarly designated as “complete” when the order is completely filled.  Completely filled is determined by carefully checking the quantity, description, and condition of the goods.

Click here to access the STD. 106.

STD. 106 Signature Authority

Non-FI$Cal Users, the staff responsible for inspecting and accepting the goods should sign either the STD. 106 or the approved purchase document.  If the STD. 106 signatory is not the person who physically inspected and took possession of the goods, then whoever does sign the STD. 106 must take precautionary measures to assure that the goods were actually received, inspected, and accepted before signing.

Department Receiving Processor

FI$Cal Users, the staff responsible for receiving, inspecting, accepting, and rejecting goods will be assigned the following roles in the system: Department Receiving Processor.  The system will track and identify who processed the department’s receipt of the goods and services.

Receiving Partial Deliveries

FI$Cal Users, if a department elects to accept partial deliveries, the Department Receiving Processor will enter the items received from the Contract/PO into the system.  The receiving processor staff inspecting and accepting the goods will fill in the:

• Date received
• Quantity received
• Note any defect in condition

This process is followed for each partial shipment received through completion.  The last stock received entry for an order must be marked or designated as “Complete” when the order is completely filled.

In no case shall payment(s) be processed for goods and services that have not been received. Services include take-back of goods as designated in Contract/PO.

DGS/PD recommends receiving staff notify the buyer whenever a purchase is received as a partial delivery, if the purchase transaction did not state whether or not partial deliveries are acceptable.  Partial delivery documentation should be provided to the buyer on a timely basis to allow for any necessary communications between the buyer and the supplier to occur.

Non-FI$Cal Users, if a department elects to accept partial deliveries, a photocopy of the approved purchase document may be used as a stock received report.  When using the purchase document as a stock received report, the receiving staff inspecting and accepting the goods will write the:

• Date received
• Quantity received
• Note any defect in condition

This process is followed for each partial shipment received through completion.  The last stock received report for an order must be stamped or designated as “Complete” when the order is completely filled.

Note:  The DGS/PD recommends that receiving staff notify the buyer whenever a purchase is received as a partial delivery if the purchase transaction did not state whether or not partial deliveries are acceptable.  Partial delivery documentation should be provided to the buyer on a timely basis to allow for any necessary communications between the buyer and the supplier to occur.

Receiving Goods at Field Locations

Departments allowing goods to be delivered at locations other than a headquarters site shall develop policies and procedures to inform pre-determined field staff of their responsibilities.

Staff assigned to receiving duties or as a Department Receiving Processor role in FI$Cal in outlying locations will be responsible for preparing/compiling and providing documentation of the following:

• Correct shipper’s bill of lading and delivery receipt.
• Unit count noted on the bill of lading/shipping receipt matches the units actually delivered.
• When damage is evident, determine, if the supplier or the carrier caused it.
• Document or enter the following information in the system and work-flow the data to the headquarters’ contact person:
  • Contact name and phone number of person receiving goods.
  • Purchase Order number.
  • Documentation of what was actually delivered and inspected to verify compliance with the Contract/PO (including technical specifications), with clear notation and explanation of any discrepancies or partial shipments.
• Perform a timely inspection of received goods and report any issues according to departmental policies and procedures directly to the purchasing authority staff.

Buyers are advised to provide receiving staff in field locations with Contract/POs in a timely manner and review any special instructions directed by department policies and procedures to assist in accurately and efficiently receiving goods.

Need for Complete Receiving/Inspection/Acceptance Documentation

The receiving package inspection and acceptance documentation initiates the payment process, as accounting staff uses this documentation to reconcile against the purchase document and supplier invoice.  This documentation also provides the material necessary for the buyer to perform any post-award activities, including closing out the purchase or conducting follow up activities with the supplier regarding outstanding or incorrect deliveries.

Failure to provide all required documentation and follow all related policies and procedures ultimately delays supplier payments unnecessarily and could result in the department paying late payment penalties.

Recommendations

DGS/PD recommends receiving personnel to:

• Keep Contract/POs open until suppliers have met all obligations and deliveries.  This is particularly important when accepting any partial deliveries or staggered deliveries over a period of time or in future fiscal years.
• Report immediately to the buyer identified on the Contract/PO any problems or questions in delivery, receipt or discrepancies in equipment received inspected and accepted.