Does anyone have a goods/services receiving policy they can share? We would love to see some other companies receiving policy for procurement processes.
While we don't have an actual written policy sample, I consulted with our practitioner expert, Judi Bicking, who offered these points that should be addressed in the policy (in no particular order):
- It must specify when goods and services must be delivered by
- It must state that the business addresses are the only valid delivery points (no other address will be a financial obligation of the company)
- If shipped after the due date, what will you accept or not accept, i.e. back-orders; if not shipped in full, cancel the item/order; etc.
- If items are ordered without a PO, it is the responsibility of the requestor to notify AP that the goods/services have been received
- How will the goods/services be accounted for internally? For example:
a. Inventory will be meticulously counted by the receiving dock and entered into the ERP system
b. Non-inventory will be meticulously counted by the requestor and entered into the ERP system
- How will damages, shortages or wrong item shipped be documented, and what is the process to notify the supplier: deduct dollars from invoice with a debit memo, or hold invoice until re-billed?
- Suppliers will send shipment with a packing slip containing PO number and/or full requestor's name
- Suppliers must mail the invoice separately to Accounts Payable (insert that address) and not put it in with the shipment
- For services, specify a policy to determine how a PO will be created: dollar only, or by hourly units?
a. A dollar-only does not require a receiver; it is a two way match between PO and invoice. When dollars run out, all other invoices will be put on hold.
b. Hourly units: does require a receiver to be entered, which would equal hours worked. Example: PO Hours: 1,200 hrs, receipt would be entered against that for 35 hours. When PO hours are exhausted, all other invoices would be on hold.
We also received this reply from Doreen Smuda, BAC, APM, Manager, Accounts Payable & Accounts Receivable, Cameco Corporation:
We do not have an established policy for goods and service receiving, however our warehouse follows a well-defined process to ensure goods are received in the system as efficiently and timely as possible. Their receiving date is shared daily on our company SharePoint page. Goods received on a workday are received in the system the following workday. Accounts payable follows this receiving timeline as well by entering invoices only after there is some certainty the goods receipt will be in place. We are a SAP shop and waiting to post invoices strengthens accuracy of unit of measure, reducing system quantity blocks, which in turn reduces effort for receiving, purchasing and AP. Timely approval of services is one of the weakest pieces in our procure-to-pay process.