Receiving report definition
/What is a Receiving Report?
A receiving report is used to document the contents of a delivery to a business. The form is filled out by the receiving staff of the business accepting the delivered goods.
Contents of a Receiving Report
The following information is typically included on a receiving report:
Date and time on which the delivery was received
Name of the shipping company that delivered the goods
Name of each item received
Quantity of each item received
The authorizing purchase order number, if noted on the delivery documentation or box
Condition of the items received. This can be a negative entry, where only damaged goods are noted.
A master copy of each receiving report is stored in the receiving department. Copies are sent to other departments as required by company procedures, such as the copy sent to the payables staff to document received goods.
Receiving Report Controls
There are several controls related to receiving reports, which are as follows:
Report numbering. From a control perspective, it can be useful to uniquely number each receiving report. The sequence of numbers can then be examined to see if any receiving reports are missing.
Supplier report cards. The condition of received goods, as noted on a receiving report, can be used to compile a report card on each supplier. This information can be used to adjust the volume of business that the buyer does with suppliers in the future.
Three-way matching. A copy of the receiving report can be sent to the payables clerk, who uses it to compare the quantity actually received to the quantity billed by the supplier. This can result in a payment adjustment.
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How a Receiving Report is Used
The receiving report can be used in several ways. For example, if certain goods are to be returned, the receiving report documents the reason for the return, such as damaged goods. As another example, the receiving report can be used as evidence of receipt in the three-way matching process. This approach is more commonly used for larger-dollar purchases. Finally, the accounting staff may use receiving reports that were completed near month-end to accrue expenses for supplier invoices that have not yet arrived.