Paradise Bay Resort Co. Ltd.

Standard Operating Procedure

TITLE:
Category: Receiving Procedure
Doc No: FIN-03 Prepared By: Date Prepare:
Name/Title Dd/mm/yy
Revision No: 1.0 Reviewed By: Date Reviewed:
Name/Title Dd/mm/yy
Effective Date: Approved By: DOF Date Approved:
Dd/mm/yy Name/Title Dd/mm/yy
Applied to: All Departments

VERSION HISTORY

REVISION
VERSION APPROVED BY DATE DESCRIPTION OF CHANGE AUTHOR
1.0 DOF/GM DOF

POLICY DETAILS

Purpose To ensure that all deliveries are received in an organized manner and
inspected prior acceptance.
To establish a procedure for receiving after hours deliveries.
Policy statement All deliveries of goods are to be received through the Receiving department
(regardless of the addressee of the goods).
Goods or services should not be accepted without a duly authorized
purchase order form or market list.
Acceptance of goods received or services rendered should be recorded on
the daily receiving report, which should be submitted to the Accounting
department
If receiving staff are off - duty when goods are delivered, the goods must be
received by the security department. (or Manager on Duty when there isn't a
security department).
Scope All employees and departments are required to comply.
Terms & Definition

Exceptions No exceptions
Related Policies or Purchasing Procedure
References
Roles & Roles Responsibilities
Responsibilities The main functions - Match delivery slips with purchase orders to
performed by the ensure that the specifications, quantities and
receiving department prices on the delivery slips match with those on

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the purchase orders

- Check quality and quantity of delivered goods
with specifications and quantities on the delivery
slips
- Arrange delivery of received goods to the
storeroom or to the requesting department.
- Prepare daily receiving reports and forward the
reports to the Accounting Department.
I. Centralization of All items purchased by the resort should be
Receiving Area received to a "Receiving area" unless otherwise
instructed. When received goods are returned by
the requesting department, the goods should be
passed to the receiving office and be inspected by
the receiving clerk.
II. General principles Receiving procedures should be performed
for receiving independently of other departments with the
operations exception of kitchen staff being present upon
receiving fresh food items and technical staff
upon receiving machines/equipment delivery.

The receiving staff should check the quality and

quantity of the goods delivered. When the goods
differ from specifications, or are deficient in
quality or weight, appropriate actions must be
taken such as: rejection of goods, correction of
delivery slip or preparation of a return slip.

Goods without a purchase order should not be

accepted; however, when goods are delivered
without a proper resort purchase order, receiving
staff should immediately notify the Purchasing
Manager and the department concerned. The
receiving process should then be formally
authorized and acknowledged by the head of
department who initiate the order and they must
take full responsibility of the order.

When goods are not delivered as scheduled,

receiving staff should notify the Purchasing
department.

Official receiving hours should be determined and

communicated to all vendors.
III. "Direct Purchase" Goods that are delivered directly to the requesting
goods and Inventory departments are called "Direct Purchase" goods.
These include perishable food and certain

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promotional publication materials.

Goods that are held in the storeroom under the

responsibility of the storeroom staff are called
"Inventory".
Procedures I. Circulation of purchase order form
1. Approved purchase orders and daily market lists are sent by the
purchasing department to the receiving department for temporary
filing. Filing should be maintained by expected delivery date to
allow easier follow up. The copy of the purchase order and daily
market list is kept in the receiving department until the delivery of
all items ordered.
II. Receiving
1. When delivery occurs and before accepting goods, receiving staff
should:
Match the purchase order number on the delivery slip with the
actual purchase order to prevent any errors (including duplicate
deliveries)
Match the specifications and quantity on the purchase order with
the description on the delivery slip.
Match prices on the purchase order with those on the delivery slip
2. At delivery, the receiving staff should count or weigh the goods to
ensure the actual quantity delivered is the same as the one stated on
the delivery slip, this must be evidenced by "tick marks" on the
delivery slip. Good delivered must also be reconciled against what
was originally ordered and all discrepancies notified. Excess goods
should not be accepted because the purchase has not been approved
3. The receiving staff must examine all items delivered to ensure they
are not damaged, including damage to the containers, dented or
rusted cans, melted frozen foods, damaged or rotten groceries, etc. In
cases where an expiry date is shown, it should be evaluated to
determine whether there is enough time remaining until the good is
to be used. Temperature checks must be conducted in accordance with
the Food Safety Policy.
4. To check the quality of the good, the assistant of the requesting
department may be required (Kitchen Chef for food delivery,
Engineer when receiving machinery). In these cases, it should be
emphasized that such procedures must be performed before the
receiving staff signs the receiving document.
5. A delivery slip in triplicate for each order form should be provided
by the vendors:
The staff will stamp the receiving date and control number on the
delivery slip and sign acknowledgement of receipt on the delivery
slip and give the 2nd copy to the vendor and attach the delivery slip
with the goods that are delivered to the department which requested the
goods.

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When requesting department receives the goods, the person in

charge should sign the delivery slip, keep a copy and return the
original to the Receiving department. The receiving staff will then
attach the original to the purchase order.
6. For all goods received, a daily receiving report is prepared, it is
classified into categories (Food, Beverage and Other) and states the
reference number from the delivery slip, the vendor's name and the
amount.
7. The "Daily Receiving Report" is sent to the Cost Controller for
supervision (when applicable) and then forwarded to Accounts
Payable together with the original delivery slips and the purchase
orders.
III- Recording delivery
1. Once merchandise has been physically received, all documents
reconciled and any discrepancies resolved, the goods must be
recorded in the inventory system.
2. If the purchase orders were raised through the inventory system,
then it is brought up on screen and the specific items and related
quantities received are clicked off or recorded, based on the actual
receiving report. If the purchase order was prepared manually, then
the purchase details must be recorded in the inventory system.
IV- Partial delivery
1. A copy of the purchase order form is kept at the Receiving
department until the delivery is completed or it becomes clear that
delivery of the remainder is impossible.
2. When partial delivery is made, a copy of the purchase order form is
marked "partial delivery". The received quantity is deducted from
the total quantity ordered and the delivery date is recorded on the
purchase order. Once delivery of all goods is complete, a copy of
the order form is marked "complete", attached to the delivery slip, and
then sent to the Accounts Payable.
V- Return of goods
1. When received goods do not meet the required specifications or they
are damaged, the receiving staff or the requesting department may
reject the goods. When all goods are returned, the delivery slip will
be cancelled and returned. When a portion of the goods are returned,
a correction has to be made on the original delivery slip and signed
by the delivery person. In countries where correction of a delivery
slip is not valid, receiving staff should request a replacement for the
original delivery slip.
2. When hidden defects are discovered after the formal receiving and
acceptance process has been completed, such goods must be
returned. In these cases, a credit note should be issued.
3. Credit notes usually consist of three-part copies, the original is
recorded in the daily receiving report and distributed to the Accounts
Payable staff, the first copy is given to the vendor and the second

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copy is given to the Storekeeper or person requesting the return. The

receiving staff should obtain a signature on the credit memo from
vendors that accept returned goods.
4. When goods are returned by the receiving staff because of quality
issues, such facts must be reported to the Purchasing department for
follow-up with the supplier to resolve the issue and for future
reference.
 RECEIVING AFTER DUTY HOURS
1. It is a basic principle to receive goods during pre-determined office
hours, and purchasing must advise the vendors of these hours. If
delivery is delayed due to heavy traffic or for other reasons,
purchasing staff should arrange for the vendors to contact the
purchasing department by phone. If goods delivered are not
necessary on that day, the vendor should be instructed to deliver the
goods the next day.
2. If goods must be received on that day for the resort operations, and
the receiving staff will not be present at the time of delivery, then he
should contact the security office (or Manager on Duty) to inform
them of the incoming delivery.
3. A security officer (or Manager on Duty) should make sure the goods
are accompanied by a delivery slip.
4. If the goods are not urgently required by the requesting department,
the requesting department is closed for the day, or goods are
delivered by mail or delivery service, the goods and the delivery slip
should be kept in the receiving office. If it is fresh food that should be
refrigerated or kept frozen, the goods must be placed in the storeroom
fridge/ freezer.
5. On the following day, receiving staff should check the goods in
accordance with the standard receiving procedures and process the
delivery slip.
6. If the goods are delivered directly to a requesting department, the
Department head or his delegate should check the goods and put the
date, name of the person receiving the goods, signature and the
name of the department on the back of the delivery slip. The Security
Officer or the Manager on Duty should observe the receiving
procedure on behalf of the receiving staff and the delivery slip should
be returned to the receiving office.

Contact points DOF

Forms & Templates

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