The document discusses establishing effective controls for receiving goods. It emphasizes that receiving controls are important to verify that delivered goods match what was ordered in quantity, quality and price. Standards must be established for the receiving process, including verifying these three aspects and documenting receipts. The receiving clerk has key responsibilities like inspection, acceptance, documentation and storage of delivered goods. Training and oversight can help reduce theft during receiving.

1. October, 2012
Presenter: C. Bogle

2. Receiving Controls
If great care is taken to establish effective controls
for purchasing but no attention is given to
receiving controls, it is conceivable that all
earlier efforts may have been wasted.

3. Establishing Standards for
Receiving
The primary purpose of receiving control is to
verify that the quantity, quality and price of
each item delivered conforms to the order
placed.

4. Establishing Standards for
Receiving
It is necessary to establish standards to govern the
receiving process:
1. The quantity delivered should be the same as the
quantity listed on the quotation list, and should be
identical to the quantity listed on the invoice, or bill,
that accompanies delivery.

5. Establishing Standards for
Receiving
2. The quality of the item delivered should conform to the
establishment’s standard purchase specification for that
item.
3. The prices on the invoice should be the same as those
circled on the Steward’s Market Quotation List.

6. The Invoice
Every time food is delivered to an establishment, it
should be accompanied by a document that lists
the items being delivered. For food, the
document is normally an invoice, which is the
same as a bill.

7. Establishing Standard Procedures
for Receiving
Verify that the quantity, quality and price for each item
delivered conform exactly to the order placed.
Acknowledge that quantity, quality and price have been
verified by stamping the invoice with the rubber invoice
stamp provided for that purpose.

8. Establishing Standard Procedures
for Receiving
List all invoices for foods delivered on a given day
on the Receiving Clerk’s Daily Report for that day
and complete the report as required.
Forward completed paperwork to proper
personnel.

9. Establishing Standard Procedures
for Receiving
Verifying Quantity, Quality and Price
Quantity verification entails weighing, counting, or
otherwise enumerating the quantity of a particular food
delivered by the vendor.
Quality verification requires knowledgeable inspection
of delivered foods and careful comparison of perceived
quality with the quality established.

10. Establishing Standard Procedures
for Receiving
Price verification requires comparing the unit
price appearing on an invoice with the price quote
circled on a Steward’s Market Quotation List or a
purchase order.

11. Establishing Standard Procedures
for Receiving
Stamping the Invoice:
It is generally good practice to provide the receiving
clerk with an invoice stamp – a rubber stamp to be
used on all invoices. It provides:
a.Verification of the date
b.The signature of the clerk receiving the food

12. Establishing Standard Procedures
for Receiving
Stamping the Invoice (contd.):
c. The Steward’s signature
d. The food controller's verification of the arithmetical
accuracy of the bill
e. Signatory approval of the bill for payment by an
authorized individual

13. Establishing Standard Procedures
for Receiving
Listing Invoices on Receiving Clerk’s Daily Report:
Receiving Clerk’s Daily Report is an important accounting
document.
Food is divided into at least two different categories,
because some foods are purchased for immediate use and
others are purchased to be kept in inventory until needed.

14. Establishing Standard Procedures
for Receiving
Listing Invoices (contd.)
DIRECTS – All foods that are charged to cost
immediately, because of their extreme perishable
nature.
STORES – All foods that are charged to cost when
issued from inventory, although ultimately
perishable, will not diminish significantly if not used
immediately.

15. Establishing Standard Procedures
for Receiving
Forwarding Completed Paperwork:
By the time all deliveries for the day are in, the receiving clerk
will have stamped and signed all invoices and entered them
on the Receiving Clerk’s Daily report. This sheet, with the
invoices attached, should then be sent to the:
 steward
food controller
accounting department

16. Establishing Standard Procedures
for Receiving
Moving all Delivered Food:
Once deliveries have been received, it is important that
foods be moved to appropriate storage areas as
quickly as possible, with those that will most quickly
deteriorate at room temperature being put away first.

17. Duties of the Receiving Clerk
Inspect incoming products against purchase order/record
Inspect incoming products against specification
Inspect incoming products against delivery invoice
Accept the products by signing the invoice
Move products to storage facility
Complete receiving report
Marking and tagging items
Rejecting products

18. Equipment Needed in the Receiving Area
Accurate scale
Transport equipment
Desk/File Cabinet
Calculator
Thermometer
Clipboard
Supplies for marking and tagging
Invoice stamp

19. Possible Theft During Receiving
Supplier delivering lesser quality item and the operation
pays the price for higher quality.
Short weight or short count and the operation pays for more
products than it receives.
Weight of ice may be included in the weight on which price
is based.

20. Possible Theft During Receiving (contd.)
Expensive and inexpensive meat may be combined in
one container and when the entire container is
weighed the operation is billed for more expensive
meat.
Empty liquor bottle may be included in a case.

21. Possible Theft During Receiving (contd.)
Delivering products directly to the kitchen and not
passing through the receiving area. Product may not be
weighed and the accounting policies may not be
followed.
Allow delivery personnel to place goods directly in the
storeroom or refrigerators. This does not allow for
verification of quantity and quality in the receiving area.
Packing merchandise in excessive moisture, wrappings
or ice. This is done to make the products weigh more.

22. How to Reduce Theft?
Discuss in your groups the strategies you would use
to reduce theft in the receiving area.
DISCUSSION

23. How to Reduce Theft?
Have different people receive and purchase
Train the employee to receive properly
Schedule product deliveries at slow times
After receipt, immediately move products to storage
Do not permit sales persons or delivery persons to
enter storage areas
Have deliveries made to a specified area of the facility
and be sure scales and other equipment are available

24. Training for Receiving Clerks
They should be able to recognize whether or not particular
items meet the established standard
They should be able to examine meats to determine grade
degree of freshness and extent of trimmings.
They should be able to determine variety, degree of ripeness
and grade for produce.
NB: Anyone can be taught to weigh and count, but only a
very few can make the necessary judgments as foods
are received.

25. Monitoring and Taking Action
Managers must occasionally be present when foods are
received to be sure that receiving personnel are following
established standard procedures.
Some managers prefer to wait until after the process has
been completed then randomly count or weigh one or two
items and compare the results to the invoice.

26. What is BLIND Receiving?
Blind receiving is where the receiving clerk is not
given a purchase order to collect the goods.

27. The Importance of BLIND Receiving
Blind receiving is important in some instances as it
will ensures that the receiving clerk verifies the goods
being received by doing all the checks and balances.
The receiving clerk will also be required to put in the
process based on the invoices.

28. Procedure for Receiving Beverage
Maintain up-to-date file of all beverage order placed:
formal and informal system
Verify that quantities, qualities and prices on invoices
conform to the purchase order
Check for quality: brands, dates, and quality based on
invoice
Check for quantity: look on purchase order and compare
to invoice

29. Procedure for Receiving Beverage
Note any breakage, leakage, broken seals and missing labels
Note discrepancy between the items delivered and what was
ordered
Sign the original invoice to acknowledge receipt of goods
and return the signed copy to the driver
Record the invoice on the beverage receiving report: used to
note items received and the costs
Store items

30. TAKE HOME ASSIGNMENT
#02

31. QUIZ #02

32. Reference
Dittmer, R. Paul & Keefe, J. Desmond. (2009). Principles
of Food, Beverage, and Labour Cost Controls. John
Wiley & Sons, INC. New Jersey