Understanding Receiving
Receiving is the process of recording the merchandise physically received by an organization as compared to what was ordered and included on a purchase order. Each receiving includes the quantity received for the various items on a purchase order, the date the items were received, and who received the items or logged the receiving, along with any additional comments as needed.
The receiving information then displays when invoicing purchase orders, and helps ensure that payment is only being made for items physically received.
Emails can be sent as part of the receiving process to the user who enters invoices. The notification emails indicate there are purchase orders that have been received and are ready to be paid (invoiced).
Benefits of Using Receiving
Completing the receiving process provides several benefits:
Better Financial Control: Receiving creates a checkpoint before invoicing, ensuring an organization is only paying for items that were received, and helps prevent overpayments and duplicate payments to vendors.
Efficiency: Because receiving information carries forward to invoicing, users can verify receiving details quickly and process invoices (invoice purchase orders) more efficiently.
Transparency: Tracking receiving details increases accountability and provides visibility into the procurement process.
Audit Trail: The electronic system maintains a clear record for audits and internal review of who received the items and when.
Automated Notifications: Emails let a user know when items are received and ready for invoicing, improving workflow and communication.
Conclusion
Using receiving helps ensure accuracy, financial control, and efficiency from delivery to payment.
See Receiving Option for more information.