Processing Receiving Reports - Procedure 014

 

1. PURPOSE

   To establish procedure for processing receiving reports in an expeditious and uniform manner.

    

2. SCOPE:

   These procedures apply to all procurements utilizing purchase orders.

    

3. GENERAL:

   The receiving (pink) copy of the purchase order is the City’s official instrument for acknowledgment of receipt for materials/services. It is the document which authorizes the Accounting Division to pay a vendor for actual materials/services received.

   For accounting and auditing purposes, it is best to avoid having one person sign all signature blocks in the purchasing transaction. Having separate personnel approve, purchase and receive goods/services reduces the chance of error or improper conduct. All signature blocks are to be properly signed. Initials are not acceptable.

    

4. PROCEDURE:

    

   1. Upon receipt of the items/services, verification of items received should be by physical count. Invoices or packing lists supplied reflect what the vendor says was shipped or what services were rendered, not what was actually received.

       

   2. Sign and indicate the date items were received or services rendered. IMPORTANT: It is very important that the actual receipt date of materials/services is recorded on the packing slip.

       

   3. Verify the items/services received against the purchase order quantity

       

      1. If all items/services are received on the order:

          

         1. Sign in the "Received By" space at the bottom of the purchase order and indicate the date items were received or services rendered.

             

         2. Complete a voucher form and get appropriate departmental approval.

             

         3. Forward the voucher form to the Accounting Division with the following attachments:

             

            • Invoice
            • Packing/Shipping List
            • Receiving (pink) copy of purchase order

             

      2. If partial items/services are received on the order

          

         1. Complete a voucher form for actual items received and get appropriate departmental approval.

             

         2. Forward the voucher form to the Accounting Division with the following attachments:

             

            • Invoice
            • Packing/Shipping List

             

      3. If "Check to Accompany" purchase order:

          

         1. Requesting department to process a requisition for the materials/services desired and indicate in the requisition comments section "Check to Accompany Order" and "Forwarding Voucher" and obtain appropriate level of authorization.

             

         2. Requesting department to complete a voucher form, indicating the requisition number on the voucher, and get appropriate departmental approval. Leave the purchase order number blank on the voucher, since a purchase order has not yet been processed.

             

         3. Requesting department to forward the voucher form to the Procurement Division.

             

         4. Upon issuance of a purchase order, the Procurement Division will forward the voucher to the Accounting Division with the original (white) purchase order and the receiving copy (pink) of the purchase order.

             

         5. Accounting Division, upon issuance of a check, will forward the original purchase order with the check to the vendor or to the requesting department, if the materials are to be picked up by a City employee.

             

   4. Requesting departments are responsible for assuring that they have received invoicing paperwork from the vendor in order to process voucher paperwork within the purchase order/formal contract payment terms.

       

   5. Invoices and receiving reports should be processed in an expeditious manner to enable the City to take advantage of cash discounts for prompt payment and to maintain the City’s credibility for payment to vendors.

       

   6. Items are paid in the fiscal year in which they are received and invoiced. At the end of the fiscal year, it is necessary for the requesting department to assure that all goods/services have been received and the invoice dated no later than September 30 of the current year. All open purchase orders will be closed out during the first quarter of the next fiscal year.