Receiving report

Receiving report is a document given in the moment when materials or products are gotten from providers, in ordered quantity and satisfactory conditions. Subsequently, the getting division gets ready pre-numbered accepting reports. In order to make receipt of services documented a duplicated supplier's invoice might be used to validate receipt and make payment authorized . Among many elements of the mentioned document the following can be found :

• "purchase order number,
• supplier's name,
• supplier's address,
• date received,
• details of the individual items received".

Process of receiving document

When requested goods are delivered, a getting program checks the information against the open buy document. Afterward, all distinguish or incorrect purchase orders will be shown on the terminal screen. At the moment merchandises are acknowledged, the framework will print receiving report, update stock document, take out or diminish the pieces, note the amount got in the open buy request record and note the receipt in the vendor history document. In a case when back-order happens, an appropriate document is uploaded instantly . The buying specialist contrasts the accepting Report and the merchant's receipt and the buy request to discover that the materials got are those arranged and charged. In the case that the given records concur, the acquiring operator initials or stamps the two duplicates of the accepting report. Except for the original one, accounting system makes three duplicates of receiving report, one for archives of receiving department, second for department of purchase in order to match it with adequate purchase order, and the last one for shoe department to verify if the received item is same as requested .

Meaning of receiving report in Accountancy

Each bill must be related to a unique buy request and an accepting report to guarantee that the item or administration was legitimately requested and agreeably given. Sometimes proof of order is not conveyed to Account Payables and this is the reason for unpaid invoices and delivery on hold .

Examples of Receiving report

• A receiving report is a document that is used to record and document the receipt of goods and services. The document is usually prepared by the receiving department and contains information such as the date of receipt, description of the goods or services received, quantity, quality, and any additional notes regarding the receipt.
• A receiving report is also used in an accounting context to document the receipt of a payment from a customer or client. The report includes the date of payment, the amount received, and the customer’s name and contact information.
• A receiving report is also used to document the receipt of materials for a construction project. The report includes the date of receipt, the description of the materials, their quantity and quality, the supplier’s name and contact information, and any additional notes.

Advantages of Receiving report

A Receiving Report is a beneficial document for both the supplier and the receiver of goods. It provides an organized and efficient way to track and document the receipt of items and ensures that both parties are aware of what has been received. The advantages of a Receiving Report include:

• Verification: A Receiving Report provides verification that the expected items were received and that their condition is satisfactory. This helps to ensure that the supplier is paid for the correct number and quality of items.
• Accountability: A Receiving Report also helps to document who is responsible for items when they arrive and who is responsible for verifying that the items are satisfactory. This helps to prevent disputes over the quality of items and any discrepancies between the supplier's invoice and the number and quality of items received.
• Accuracy: A Receiving Report also helps to ensure that items are accurately tracked and documented. This helps to avoid any discrepancies in the number and quality of items received.
• Traceability: A Receiving Report also provides traceability back to the supplier, which helps to ensure that any discrepancies can be easily traced back to the supplier. This helps to reduce the risk of fraud or theft of items.

Limitations of Receiving report

A receiving report is a document that is used to document the receipt of goods and services from suppliers. However, there are a few limitations to this document:

• It does not always provide a detailed description of the goods or services being received. For example, it may not specify the exact quantity or quality of the items being received.
• It is not always possible to verify the authenticity of the goods or services being received.
• The receiving report does not provide any information about the total cost of the goods or services being received, or the payment terms.
• It does not provide any information about the terms of the contract between the buyer and the supplier.
• The receiving report does not provide any information about the delivery schedule of the goods or services being received.

Other approaches related to Receiving report

The following are other approaches related to Receiving report:

• Goods Received Note (GRN): This is a document that is used to note the receipt of goods from a supplier. It is used to track inventory and ensure that the right items have been received in the right quantity.
• Three-Way Matching: This is a process that compares the purchase order, the supplier invoice, and the receiving report in order to ensure that the right items have been received in the right quantity at the right price.
• Vendor Performance Reports: This is a report that tracks the performance of a vendor or supplier in terms of quality, timeliness, and accuracy of delivery.

In summary, Receiving report is a document that is used to document the receipt of materials or products from suppliers. Other approaches related to Receiving report include Goods Received Note (GRN), Three-Way Matching, and Vendor Performance Reports.

Footnotes

Receiving report — recommended articles

Dispatch note — Purchase invoice — Delivery note — Purchase ledger — Debit Note — Ultimate consignee — Shipping note — Waybill — Acknowledgement of receipt

References

• Joyce J. D., (2009), Not Quite an Ordinary Life: The Memories of an Ordinary Man Who Lived a Somewhat Extraordinary Life, iUniverse New York, Bloomington, chapter 9
• Norton C. L.(red.), (2014), Financial Accounting: The impact on Decision Makers, Cengage Learning, Stamford, p. 317
• Van Belle J. P.(red.), (2000), The Principles of Business Computing, Juta, Kenwyn, p.460, 463
• Vanderbeck E. J., (2013), Principles of Cost Accounting, Cengage Learning, Mason, p.78
• Whittington O. R.(red.), (2012), Wiley CPA Examination Review, Outlines and Study Guides, John Wiley & Sons, Hoboken, p. 117

Author: Maria Kucz