Process Flow for Receipt of Inventory
Most businesses receive inventory shipments on a regular basis. Inventory provides the resources to build new products for customers or the finished products to sell directly to customers. Companies that follow a predetermined inventory receipt process ensure that the company knows which inventory items enter inventory and only pays for those items. An accurate inventory receiving process also contributes to maintaining accurate inventory levels.
The first step when receiving inventory occurs when the truck arrives at the company’s dock. The warehouse personnel meet with the truck driver and start unloading the truck. The warehouse pworkers unload the inventory from the truck into a specified location within the warehouse. The employees record the quantity of each item on the shipping document. Both the employee and the truck driver sign the document verifying the quantity received.
The warehouse employee compares several documents to ensure that the proper quantities are recorded. These documents include the original purchase order, the shipping document and a handwritten receiving report. If any discrepancies regarding inventory item or quantity exist, the employee verifies the inventory received and manually writes the correction on the document.
After verifying the quantities received, the warehouse employees store the inventory on the warehouse shelves. Each warehouse shelf contains markers which the company uses to locate inventory when needed. The warehouse employees write the warehouse markers on the documents as they store the inventory.
The employee uses the documents to update the inventory received in the company’s inventory system. After logging into the company’s computer system, the employee enters each item received, the exact quantity received and the warehouse location. After entering all items into the system, the employee prints this inventory receipt report and adds this to the current set of documents. She forwards this packet to the purchasing department.
When the purchasing department receives the documents, they review any discrepancies noted by the warehouse employee. The vendor usually mails an invoice to the purchasing agent who compares this invoice to the documents. If any discrepancies exist between the invoice and the documents, the purchasing agent contacts the vendor and negotiates the total amount due. Once the agent feels satisfied with the amount to pay, she writes it on the invoice, approves the invoice and forwards it for payment.