RECEIVING CONTROL

All establishments must have set down procedures for receiving, checking and accepting goods,
which have been delivered by suppliers. These goods must be checked against the purchase
specification applicable to them and the order made to the supplier as per requisitions received clerk
or officer on whom this responsibility falls, whereas in smaller establishments the responsibility may
fall on the departmental head, manager or proprietor.

AIMS OF RECEIVING (FOOD) - Receiving of food in many catering establishments is considered to be

very important and is often staffed with people having specialized knowledge.

The aims are as follows:

a) The quantity of goods delivered matches the quantity which has been ordered. This means all
the goods should be weighed or counted.
b) The quality of goods delivered is in accordance with the specification stated on the purchase
form.
c) The prices stated on the invoice are in accordance with the prices on the purchase order
form.
d) When the quantity or quality of the food delivered is not in accordance with the purchase
order, purchasing officer should be informed and request for credit memo/ credit note
e) An accurate record is made in the goods received book recording details of the delivery.

AIMS OF RECEIVING (BEVERAGES) - The value of beverage purchases and the ensuring profits from
the sales of beverages are high, it is important that due attention is given to the receiving of
beverages.

Aims are as follows:

a) The quantity beverage received matches that which has been ordered. Goods should be
checked tallying purchase order and delivery note crates and cases should be is check for
such things as empty, missing or broken bottles.
b) The quality inspection is simple, but requires a thorough and methodological approach. It
involves such things as checking the brand name and label on each item, alcohol proof,
vintage, shipper’s name, manufacturing & expiry date etc.
c) The prices stated on the delivery note are in accordance with the negotiated prices shown
on the purchase order form.
d) When quantity or quality received is not in accordance with the purchase order, the
receiving clerk prepares a request for credit note.
e) An accurate record is maintained in the goods received book.

JOB DESCRIPTION OF RECEIVING CLERK/PERSONNEL

The job of the receiving clerk is technical & he should have a complete knowledge about each item
as per the SPS. Some important points in this regard are as follows:
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•Scale being properly adjusted
• Special items like fresh fruit that bruise easily are handled with care so as not to damage the food.
• Items are counted individually when received.
• Ensure that the tinned food supplies are fresh & must display the manufacturing date & expiry
date
• Goods purchased in cases are tested to ascertain that the entire content are of the specified
quality.
• Items checked against standard purchase specification.
• Items checked for quality and uniformity – If necessary by consulting the chef or purchasing agent.
• Physically verify the quantity and tally with the purchase order & invoice.
• Amount of merchandise (items) delivered compared to the amount ordered.
• Request for credit note immediately issued where the weight or count is less than invoice or where
inferior quality is supplied, requires a return of merchandise.
• Consistently late shipments brought to the attention of the purchasing department.

QUALITIES OF RECEIVING CLERK/PERSONNEL

 Familiarity with the necessary documents and equipment required for receiving
 Apply quality judgment
 Sound knowledge regarding SPS & quality standards of all products/good received
 Hygiene and sanitation knowledge
 Literate & graduate in any stream
 Honesty and loyalty towards the organization

Equipment needed for receiving

The receiving department of a restaurant is different from of a hotel. In a hotel there is a
variety of goods and huge quantity of the goods. There are various kinds of equipment such
as weighing scale of different capacities, trolley, or even forklifts used for transferring the
goods from the receiving section.

The following are some major equipment used for receiving:

Various weighing scales: various types of weighing scales are installed as per the needs of
the receiving department. Different scales are used for weighing heavy goods and minute
ingredients.

Trolleys: are mostly used to carry goods which have been received and is to be transferred
to various stores , kitchens and departments.

Freight Elevator: to carry heavy goods to higher floors , goods lifts , known as service lifts are
available.

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 Fork lift: It is used to unload materials from trucks and carry them to the receiving
department or to the weighing scale to ascertain the exact weight of the goods received .it is
used in in very large hotels and in airline catering where large quantities of packaged boxes
of food supplies are received.

Racks : several racks are kept in the receiving section so that the goods received can be set
aside till they are shifted to the store , which helps to keep the receiving department tidy for
the supplies to be received.it also ensures better hygiene conditions are maintained and
food is not contaminated with the germs.

Other small equipment are like thermometer, calculator, sanitizing device for applicable
food items, clip board, invoice stamp etc.

Various weighing scales

Trolleys & Goods Freight elevator Fork lift

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 Infrared thermometer

DOCUMENT BY SUPPLIER
 ADVICE NOTE- Advice notes are sent to the purchaser, informing him that goods ordered
have been dispatched, giving the date of dispatch and method of carriage used. eg. Post, rail
etc. Most suppliers on a regular basis do not use these procedures; the most common would
be for equipment or deliveries of high value.

 DELIVERY NOTE- Are sent by the supplier to the purchaser accompanying the goods
ordered. It mentions of only the details of the quantity and does not disclose information
regarding the rate or amount. The goods must be checked against delivery notes and then
signed for. The delivery note should be in duplicate one copy for the purchaser and another
for the supplier.it is also known as “Dispatch Note”.

XYZ WHOLE SALE SUPPLIER LTD.

To Delivery note No.173
ABC Hotel Purchase Order No.28
Sl Item name Description Quantity Remarks
no.

Goods Received by _____________

Sample Format of Delivery note

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  INVOICE: is a business document issued by a vendor to a purchaser signifying the products
and their quantities, approved prices for the products or services which the vendor has
already provided the purchaser with. Some suppliers will incorporate the invoice with the
delivery note to minimize their paper work. A disadvantage of this system is complications
that may be created when goods are returned involving the issue of credit notes. The layout
of invoice will vary according to the supplier and their particular system; the supplier retains
a copy for accounting purpose.

XYZ Supplier
New Delhi

To, Date
ABC Hotels Pvt. Limited Invoice No.
New Delhi
Name of item with Unit Quantity Unit Cost Total cost Sales Tax
description

Total
Less Discount
Signature of Supplier

Grand Total

Sample Format of Invoice

 Debit Note: document issued by a buyer to the seller for debit is made in sellers account. It
is raised under following circumstances:

 Issued when there is an increase in invoice value due to the return of goods or
inferior quality of goods
 Issued when increase in the value of invoice due to additional goods delivered

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 ABC Hotels
New Delhi
To, Date-
XYZ, Supplier Sl.No.
New Delhi
Please issue credit note for items listed below:
Code Items Weight Unit Rate/unit Total Cost

Reason 1. Liver not delivered but invoiced.

2. Beef not as per specifications.

Receiving clerk Delivery man Accounts

Sample of Debit Note

 CREDIT NOTE: - document issued by a seller to the buyer when credit is made in buyers
account. It is raised under following circumstances:

 When purchaser returns the good

 When supplier had charged excess amount
 When good supplied are of inferior quality

XYZ Supplier Ltd.

New Delhi
CREDIT NOTE

To, Date-
ABC Hotel S.No.
New Delhi
Code Items Weight Unit Rate/unit Total Cost

Reason 1. Liver not delivered but invoiced.

2. Beef not as per specifications.

Authorized By Accounting Department Issued by ___________

Sample of Credit Note

RECORDS MAINTAINED IN RECEIVING DEPARTMENT

 Goods Received Book (GRN)
 Daily Food Receiving Report.

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GOOD RECEIVED BOOK: Establishments will have their own goods received documentation, either in
the form of notes or books specifically designated to meet their own needs. The information
contained on such documents needs to include the following
 Date of delivery
 Name of supplier
 Order No.
 Delivery note no.
 Space for comments as to any variances in quantity and quality.
 Signature of the receiver.

ABC Hotel
Supplier Date of delivery……..
Purchase order no.
Sl no. Goods Pack Price Order Delivery Remarks
size quantity quantity

Received by…………………………….. Checked by……………………………..

RECEIVING CLERK’S DAILY REPORT- It is prepared in duplicate for F & B Control verification. The
receiving clerk from invoices received with goods purchased and delivered that day completes daily
food receiving report at the end of each day. This report summarizes all daily food deliveries to the
establishment. The main purpose of daily report of food received is to summarize purchase for that
day. However, this daily report can themselves be summarized each day by transfixing the column
totals to a receiving report summary.

Receiving Clerk’s Daily Report

No. _________
Date ________
Name of Quantity Unit Description Unit Total Purchase Journal
supplier price amount Distribution
Food Food Sundries
Direct Stores

Total _____________________
Sign of receiving clerk __________

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MEAT TAG: These are the tags put on the butchery items mentioning all details of cuts,
weight, price etc. When the item is issued then the issuing date is put on it and copies sent to
two different places, one copy to F&B control and the other to stores

Tagging food serves many purposes:

a) It aids the control of expensive food.
b) It requires the receiving clerk to weigh percentage record each item, and to check against
the specific purchase specification weight range.
c) It assists in obtaining a more accurate daily food cost percentage figure.
d) It assists in controlling the stock levels of these items.

The operation of tagging of expensive items are as follows.

a) On receiving the items, they are checked against the purchase specification as to being
acceptable or not.
b) If suitable, a tag is made out for each item received, the main information being taken from
the invoice or note. The weight recorded on the tag being obtained actually weighing each
item individually.
c) The tag is then separated along the perforation with the control office copies of the invoice
or delivery note and the kitchen copy being attached with string or wire to the food item.
d) When the item is issued, at a later date, to the kitchen for use, the tag attached to the item
is removed and send to control with the date of issue filled in.
e) The control office will usually operate a reconciliation of meat tags form, recording the tags
received from the receiving department and from the kitchen. Thus the total value of tags of
each specific expensive item would be known for.

MEAT TAG NO.22928

Item Beef
Grade prime
Cut Rib
Total weight 12 kg
Total value Rs. 2400
Rate /kg Rs. 200
Supplier XYZ Meat Co.
Date Received. 21.08.2020
Date issued 20.082020
Food Control Copy
----------------------------------------------------------------------------------------------------------------------------
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 MEAT TAG NO.22928
Item Beef
Grade prime
Cut Rib
Total weight 12 kg
Total value Rs. 2400
Rate /kg Rs. 200
Supplier XYZ Meat Co.
Date Received. 21.08.2020
Date issued 20.082020
Food store copy

Sample Meat Tag

ADVANTAGES OF MEAT TAG

 Facilitation and supplementation of inventory records and the checking process.
 Shortage and discrepancies- Check
 Assurance of checking procedures.
 Assists the FIFO procedures.
 Reweighing is eliminated.
 It helps in the calculation of meat costs per day.
 It helps in comparative evaluation of meat.
 It helps for reordering of stock.
 It aids in tracing the origin of meat in case of problem.
 It helps to keep a strict control in general.
 Receiving stamp to be affixed on invoice.
 Items are sent to respective storage areas.

RECEIVING METHODS

i) Receiving with invoice. The person receiving the goods should verify these particulars
against the items received. This is a relatively simple way of checking. It has a disadvantage of
delivery person being negligent of checking weight & quality.

ii) BLIND RECEIVING METHOD- In this method, blank invoice with only the list of items being
delivered is sent. The quantity, quality and other characteristics are excluded. This makes it essential
for the receiving person to check and fill in this information in order to complete the receiving
process. Thus the quality and quantity of the delivered goods are checked and recorded by the
receiving person. A separate invoice with all the details is sent directly to the person in charge of
purchasing. For the sake of convenience many vendors print copies of the invoice in such a way that
certain information is blacked out in selected copies. This is a rigid and accurate method of ensuring
the quality and quantity of the goods received. It has following disadvantage of rigid, time
consuming and costly.
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RECEIVING PROCEDURES
 Be ready for receiving the delivery along with the required documents.
 Check the merchandise mentioned on SPS.
 Weigh each item separately.(Ice & Water consideration)
 Weigh meat orders separately.
 Tag meat on delivery.
 Check for quality.
 Check for price.
 Check for expiry date & manufacturing date.
 Check for leakage & damage.
 Store items properly.

FRAUDS IN THE RECEIVING PROCEDURE

BY SUPPLIER - There are many ways in which an unscrupulous person can defraud an operation.
1. Packing, merchandise in excessive moisture or wrappings or ice to make weighing more
difficult and to add more weight to it.
2. Repackaging product and putting lighter weight in new crates while keeping the price same
as for the heavier original crates.
3. Placing satisfactory merchandise on top level that is visible, but inserting merchandise of
inferior quality underneath.
4. No sending grade specified hoping it will not be noticed.
5. Sending incomplete shipments with full bills and neglecting to send the remainder.
6. Charging for boneless meat while leaving the bone in and excessive fat on the meat.
7. Supplying short weighs.
8. Using excessive packaging materials to increase weights.
9. Delivering merchandise directly to the kitchen without passing it through the receiving
department.

FRAUDS IN THE RECEIVING DEPARTMENT- The prime objective of the receiving department is to
ensure that the establishment has obtained the goods of correct quality and at the agreed price. This
is one of the most important departments and should be manned with fully trained persons who
have the knowledge of receiving procedures as well as items being ordered. But if it is being staffed
with people having no specialized knowledge, then it would lead to frauds in receiving. Some of such
frauds are as follows:
1. The quantity received is not in accordance with the purchase order i.e. in terms of quality
and standard purchase specification.
2. Accepting substandard quality due to ignorance or intentionally.
3. Incorrect weighing equipment.
4. Some tricks where vigilance is required.
a) Highly iced fish
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 b) Wet vegetables.

PREVENTIVE MEASURES
1. Strict control on people working in the receiving department.
2. Proper entries for each and every article.
3. To keep a proper check on incoming articles.
4. Proper security to be maintained to prevent unauthorized persons from entering the
receiving department.

HYGIENE AND CLEANLINESS OF THE AREA

The following points must be kept in mind while adhering to the principles of Hygiene and
Cleanliness in the receiving department

 While handling raw materials bare hands shouldn’t be used

 Receiving equipment’s should be sanitized after use
 Fly catchers should be installed at a strategic points
 Vegetables supplied must be dipped in chlorinated water mixed at 10 ppm before ending
them to the kitchen
 Receiving area should be demarked for goods delivered, goods accepted & goods rejected
 He passage should be easy for movement, no containers, boxes etc. should be strewn
 Hazardous articles must be unloaded and kept in a separate area

Source:
Adapted from Food and Beverage: Management & Cost Control by Jagmohan Negi,
ISBN-8173912548
Adapted from Principles of Food, Beverage and labor cost control for hotels and
restaurant by Paul R Dittmer & Gerld g Grifin
ISBN 0-8436-2087-0
Adapted from Food and Beverage: Management by Partho Pratim Seal

ISBN-0-19-946983-0

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