Number PPP 35
Effective 9/1/04
Replaces NEW

Purchasing Policy and Procedure

Departments Receiving Materials and Equipment

1. POLICY:

When receiving materials and equipment inspect items received for quantity, quality, condition, and any special specifications as indicated on the purchase order.

2. PROCEDURES:

A. Discrepancies discovered at time of delivery

When Inspecting shipments, if damages or shortages are discovered at the time of delivery, a notation is immediately referenced on the carrier’s bill of lading (see Freight Claims), if a Purchasing Agent was involved contact that agent and they will contact the supplier to determine a remedy. If a Purchasing Agent was not involved you need to contact the supplier yourself to determine a remedy. To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

B. Discrepancies discovered after delivery has been made

When inspecting shipments and a hidden shortage or hidden damage is discovered after shipment has been received, a claim will be issued against the supplier (see Freight Claims). To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

C. Overages and Duplicate Shipments

When inspecting shipments and the quantity count reveals an excessive quantity or a duplicate shipment, a decision will have to be made whether or not to accept the additional quantity. If it is accepted a change order will have to be issued to the original purchase order, if one was issued. See PPP 11. To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

D. Shipments Which Do Not Meet Specifications

Items, which do not comply with the specifications of the Purchase Order, will be rejected at the time of the inspection. If a Purchasing Agent was involved the department will notify the Agent immediately if an Agent was not involved the department will notify the supplier immediately. To hold payment, contact the appropriate Vendor Relations Specialist by clicking on Accounts Payable Vendor Relations Contacts.

E. Returns

If a department needs to return materials or goods to the

Supplier, see PPP 7.

F. Freight Claims

Goods shipped FOB require the shipper to absorb any losses during shipping. Any damaged or shorted shipment must be held at the inspection point pending an investigation by the carrier. Departments must contact the carrier to request an inspection report. Upon completion of the investigation and preparation of a damage report, the supplier will be furnished the original report, from which the supplier may initiate a claim against the carrier. The supplier will then arrange for any replacement or return of the damaged or shorted item.

G. Some Helpful Notes

    When UPS/FedEx etc makes a delivery to a department and multiple packages are delivered the “one” signature from the person who signs for the package, is signing for all the packages delivered in that group.

    If a department receives a misdirected package have the driver re-scan the package and note that it is being returned to the driver.

    If you have a camera, preferably a digital one; it would be a good idea to take pictures of the damaged goods, and the shipping container if that was damaged.

    When placing an order, always make the Shipping Terms as FOB Destination.

References:

PPP 7 Return Material Process
PPP 11 Change and Cancellation Orders
Accounts Payable Link: Accounts Payable Vendor Relations Contacts