In this article, we explore what inventory receipts are and their different types. We also share our 7-step process for managing receipt of inventory. Read on to learn more.
An inventory receipt is a document or electronic record that confirms the addition of items to a company's inventory. It serves as evidence that certain goods have been received and added to the existing stock.
Example: After receiving a shipment of products, Jane documented the details on an inventory receipt to update the company's stock records. This receipt ensures accurate tracking and validation of items added to their warehouse.
Purchase Order Receipts: Generated when goods are received against a previously issued purchase order from a supplier.
Return Receipts: Issued when goods are returned by customers or when items are sent back to the supplier.
Transfer Receipts: Created when inventory is transferred from one location or warehouse to another within the same company.
Production Receipts: Pertinent to manufacturing industries where finished goods are added to the inventory after production.
Date: The day the goods were received.
Supplier Information: Details of the company or individual from whom the goods were purchased or received.
Purchase Order Number: Corresponds to the initial order, helping link receipts with orders.
Item Details: Description of the items, including SKU, quantity, unit price, and total cost.
Shipment Details: Information regarding how the inventory was shipped, including tracking numbers if applicable.
Receiver’s Signature: Confirmation from the person who received the goods.
Use our 7-step inventory receipt creation process to effectively manage your inventory. Simply follow the steps below:
Begin with collecting all essential details. This includes the vendor's name, address, contact information, product description, SKU or item number, and any other pertinent data. Also, gather transaction specifics such as the purchase date, receipt date, and payment terms.
Example: When Jane received a new shipment of goods, she made sure to note down the supplier's name, "Evergreen Suppliers", along with their contact details. She also jotted down the transaction's date and specific item numbers for each product.
Establish a standardized format for all inventory receipts. This will help in reducing errors and make it easier for anyone reviewing the receipts to understand the information presented. The format should be logical, with sections for vendor details, product information, and transaction details.
Example: Mike always used the same layout for his inventory receipts, placing the vendor's information at the top, followed by product details. This consistent format ensured that anyone in his team could easily read and understand any receipt without confusion.
Make sure every item on the receipt has a clear and detailed description. This ensures that there is no ambiguity about what has been received to reduce the chances of errors in the future.
Example: Instead of writing "blue shoes" on the receipt, Sarah specified "Men's blue athletic shoes, size 10, Model X123". This clarity ensured that stock managers could quickly identify and place products correctly in the inventory.
Clearly list the quantity of each item received and its unit price. This will not only help in immediate cost calculations but will also assist in tracking any discrepancies between what was ordered and what was received.
Example: For his recent consignment of books, Alex listed "50 copies of 'Mystery Tales', $10 each" on the inventory receipt. This made it easy to calculate the total cost and verify the number of books received.
Once the inventory is received and the receipt is created, have a system in place where another member of the staff verifies the items received against the receipt. This double-checking mechanism can help catch errors or discrepancies early on.
Example: After logging a new shipment of electronic gadgets, Lisa asked her assistant, Tom, to cross-check the items against the inventory receipt. Tom's review ensured that any discrepancies were caught and addressed promptly.
In our digital age, it's a good idea to maintain a digital copy of all inventory receipts. However, also keeping a physical copy filed in a safe and organized manner ensures you have multiple points of reference when needed.
Example: Carlos always scanned his inventory receipts and saved them in a dedicated folder on the company's cloud storage. However, he also filed a printed copy in the office's filing cabinet, ensuring multiple ways to access the data if needed.
Periodically review your process for creating inventory receipts to ensure it remains efficient and effective. As your business grows or changes, you may find that your system needs adjustments to accommodate new products, vendors, or other variables.
Example: Every quarter, Naomi reviewed the procedure for creating inventory receipts to identify any inefficiencies or gaps. By keeping her process updated, she made sure her business adapted to changing inventory needs and challenges.
Stellar Stationery Supplies, a leading distributor of office and art supplies, recognized the need for a streamlined and efficient inventory management system due to their rapidly expanding product range and customer base. Here’s how they implemented our process:
At Stellar Stationery Supplies, when a shipment of new pens arrived, the receiving clerk noted the supplier's name, "Ink Innovations", and recorded their address and contact details. For every product type in the consignment, the clerk made sure to document the model numbers and other relevant data.
Stellar Stationery Supplies maintained a standard receipt format with the vendor's information at the top, product details in the middle, and transaction details at the bottom. This layout made it simpler for the accounting team to process invoices and for the warehouse team to verify deliveries.
Instead of merely writing "gel pens" on the receipt, the clerk specified "Blue gel pens, 0.5mm tip, Model G500". This precision allowed the storage team to distinguish between different stock items and helped in accurate restocking.
The receipt for the recent pen delivery stated, "200 units of Model G500, $2 each". This clarity in listing quantity and price enabled the finance department to track expenditures and manage the company's budget effectively.
After cataloging the new delivery, Jenna, the inventory manager, assigned Mark, a warehouse assistant, to double-check the items against the provided inventory receipt. This step ensured that the recorded items matched the actual stock received to highlight any potential oversights.
Each inventory receipt at Stellar Stationery Supplies was promptly scanned and uploaded to their secure digital archive system. Additionally, a printed copy was systematically filed in their records room to offer dual referencing points.
Every month, Stellar Stationery Supplies conducted an internal audit where they revisited their inventory receipt creation process. Continuous evaluation ensured that the company stayed in line with best practices and efficiently addressed its evolving operational needs.
We hope our article has now left you with a better understanding of what inventory receipts are and how to effectively create one.
If you enjoyed this article, you might also like our article on inventory loss or our article on receiving inventory.
