Inventory Receiving

compiled by: RVAA- The RV Aftermarket Association

Receiving merchandise is an important non-selling function of any store. The receiving activity is concerned with accurate receipt and checking of merchandise, and also with proper handling of the records for merchandise.

Purchase Order Files
The purchase order file is essential for general orders. Never remove the purchase order file from the location designated. The receiving clerk should always control this file, but have it accessible to other individuals to check in and out.

The receiving clerk is responsible for matching purchase orders with receipts, checking for completeness and accuracy, and passing invoices to the accounting department for payment.

Check-In Facilities
Management should provide adequate space, with a table and shelves, for prompt handling of incoming goods. The receiving clerk is responsible for the maintenance of this area. The receiving clerk should notify management if they need more space or equipment to do an effective job.

Do not leave the receiving room, check-in area, or storage areas unattended. Always lock outside doors to these areas at all times when not in use. Limit access to keys. Outside areas should be well-lighted during hours of darkness. The door should have a bell or buzzer to notify the receiving room of deliveries. Never allow customers in these areas. The receiving area should remain clean and clutter free. A lock-up area should be provided for high-value, easy to steal merchandise. Lock it up at all times and only the store manager and designates should have access to the key.

Receiving Procedures
While unloading the truck, all pieces should be carefully counted, by the driver and store personnel. Note any shortages on the delivery ticket and have the driver sign it. Follow-through with the carrier’s agent to promptly trace, locate, and deliver missing items.
 
Exercise extreme care when signing for merchandise. Stack merchandise orderly in the receiving area to allow for recounting if a discrepancy arises between the count of the driver and the clerk. Stack high value items separately in a secure area away from the receiving door. Position any heavy and bulky merchandise to minimize re-handling.

Check shipping labels during unloading to ensure that you only accept freight designated for the store. Check for damage during unloading. Store personnel should inspect all damage and the truck driver should note it on the delivery ticket, and sign it. The store keeps the merchandise pending completion of a damage claim.

Notify the carrier’s agent immediately upon discovery of damage. File claims directly with the carrier, using the forms provided. The agent will require a copy of the invoice indicating cost information to substantiate the amount of the claim.

The receiving clerk is responsible for recording damaged goods and storing them, pending instructions for disposal from suppliers or carriers. The store must keep the damaged merchandise, shipping container, and packing materials until the claim is settled. Keep copies of the claim documents in an active “Claims Pending” file until the claim is satisfied. The clerk must carefully pack and ship damaged goods that require return for inspection and credit. Do not refuse a damaged shipment of merchandise shipped by a common carrier. Once the merchandise leaves the supplier, it belongs to the purchaser. The trucking firm only transports the merchandise, and you must file all damage claims against the carrier. Enter a claim whenever you find concealed or hidden damage. Notify the accounting department of returned-goods shipments, shipping charges, and credits. Notify the appropriate department manager of any damaged goods.

Check-In Procedures
Use the packing list taped to the carton to check the merchandise. Remove merchandise from the boxes, properly identify it, cross-reference it to the packing list, and check it off.

To avoid congestion in the receiving area, check in large bulky items first, and move them to the sales floor. Separate the factory pack cartons from the tote boxes and cartons of mixed merchandise. Check in factory pack cartons first, price them, and move them to their proper display areas.

Sort merchandise received in tote boxes and repacked cartons on the check-in table by stock number and check them in only when you have the proper quantity. Check in items requiring greater security without delay and move them directly to the sales floor or to the locked security area. Do not move merchandise from the receiving area without first checking off the packing list and pricing it. Record overages and shortages on the packing slip. Notify the accounting department and supplier of overages and shortages.

Report order filling errors resulting in shortages, overages, or incorrect items to the supplier using the forms provided. In reporting, reference to the original order, invoice and packing list numbers, and dates. Make notations of any shortages, overages, or incorrect items on the invoice and packing list.

If you receive wrong items, which you cannot absorb into the inventory, request authorization to return for credit. Coordinate this with the department manager involved, so that the correct items are reordered. Incorrect or excess items not to be retained by the store are to be stored with proper documentation in the secure area until disposition can be arranged.

Notify the department manager of shortages and items ordered but not shipped (back ordered or cancelled items), so they can be reordered. Notify the accounting department so it can request a credit.