Receiving and Inspection of the materials


Receiving of Materials

In small and medium-sized manufacturing concerns, functions of receipt and inspection of materials are to be performed by the stores department or the store-keeper. But in case of large manufacturing concerns, generally, a separate Receiving Department is set up. The Receiving Department has the following functions to perform:

(i) To receive, unload and unpack the materials.

(ii) To check whether the packages and their contents are intact or not.

(iii) To verify and check the quality, quantity and other specifications regarding materials in accordance with the purchase order.

(iv) To segregate defective materials from the lot by comparing delivery note sent by the supplier with the copy of the purchase order. Any shortage or breakage of material is intimated along with the acknowledgment sent to the supplier for the receipt of material.

(v) To pass on the materials from the receiving clerk to the inspector for his thorough inspection of the materials received.

(vi) To prepare the ‘Goods Received Note’ showing the particulars of the materials received.

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Inspection Note

When materials are received by the Receiving Department, they are unpacked and compared with the materials ordered for with the help of the purchase order. If the materials are found to be in order, they are sent to the inspector for the inspection of the quality. If the quality of the materials is found to be fit, the inspector shall prepare an Inspection Note certifying the quality.

Specimen/Format of Inspection Note

The specimen of the Inspection Note is given below:

Receiving and Inspection of Materials

Rejection Note

If the materials received are not found to be in accordance to the purchase order or fit for use, the inspecting staff rejects them for return to the supplier. For this purpose, a document known as Rejection Note is prepared.

Specimen/Format Rejection Note

The specimen of the Rejection Note is given below:

Inspection of Materials - Rejection Note Specimen - Format

Material Receipt Book

It is the prime book used for the purpose of store accounting and keeps a date-wise record of the materials received in the stores. The Material Receipt Book provides the following information:

(a) Name and address of the supplier.
(b) Mode of Transport.
(c) Vehicle No.
(d) Carrier’s Note No. and date and number of packages.
(e) Brief description of materials.
(f) Daily Receipt Voucher No. (D.R.V. No.) and date.
(g) Stock Ledger Folio.

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Specimen/Format Material Receipt Book

The specimen of Material Receipt Book is given below:

Receiving of Materials - Material Receipt Book

Material Received Note (Or Goods Received Note)

Some manufacturing concerns prefer to keep a loose card known as Material Received Note. This note is serially numbered and dated and avoids the use of the Material Receipt Book. Material Received Note also replaces the Daily Receipt Voucher. Although the Material Received Note avoids the use of the Material Receipt Book, it is advisable to maintain this book since it is a prime book of store accounting and provides useful information.

Normally, five copies of Material Received Note are prepared and are sent to the Purchasing Department, Accounting Department, Stores Department and the department which has initiated the purchase requisition. The last copy is kept by the Receiving Department for future reference.

Specimen/Format Material Received Note

The specimen of a Material Received Note is given below:

Material Received Note

Damage/Shortage/Excess Report

This report is prepared by the receiving section of the stores department on opening the packages and comparing the actual materials received and materials ordered for with the help of the purchase order. Payment to the supplier of materials has to be adjusted according to this document. The proforma of this report is as follows:

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Damages Shortage Excess Report Format



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