What does a receiving report document?

A receiving report serves a vital role in the inventory and accounting processes of a business. It documents the inspection of merchandise upon receipt, confirming that the items delivered match the order in terms of both quantity and condition. This report typically includes details such as item descriptions, quantities received, and any discrepancies or damages noted during the inspection.

By generating a receiving report, businesses can ensure that they keep accurate records of inventory and manage their supply chain effectively. Having verification of quantities received helps in reconciling purchase orders and invoices, which is crucial for maintaining accurate financial records and ensuring that suppliers are paid correctly only for what has been delivered. This practice supports internal controls and assists in preventing losses or errors in inventory management.