Inventory Receiving Process: How to Check Supplier Stock Before Recording It

An inventory receiving process is the routine you follow when supplier stock comes in: compare the purchase order and bill with the cartons, count the actual quantity, inspect the condition, separate anything unclear and record the purchase at the shop or godown that received it.

For an Indian retailer, wholesaler, distributor or FMCG stockist, this is the moment to stop the bill from becoming a wrong stock number. The truck may be waiting, the invoice may say 48 cases and the team may find 46 sealed cases, one crushed case and one case of a different pack. Check the delivery before you put it into saleable stock.

What to do when a supplier delivery arrives

Keep the purchase order, supplier bill, delivery note and cartons together. One person should count while another reads the item and quantity from the document. Keep a small receiving area clear so goods that need an answer do not get mixed with cartons ready for storage.

Use this order:

1. Identify the item: compare the brand, item name, flavour, model, size, strength and pack description.
2. Check the unit: confirm whether the document uses cases, cartons, boxes, pieces, kilograms or litres.
3. Count what came in: count sealed cartons first, then open cartons that need a piece count.
4. Inspect the condition: look for leaks, wet cartons, crushed boxes, broken packs, spoilage or tampering.
5. Mark the difference: write the expected quantity, actual quantity, affected quantity and the person handling the supplier follow-up.
6. Keep the good and unclear goods apart: move saleable cartons to the next step only after the count and condition are clear.

The bill tells you what the supplier says was sent. The cartons tell you what reached your shop or godown. Record only what your receiving process confirms.

What to do with the delivery

What you find	Check first	Next action
Item, unit and quantity match	Count and condition	Record at the receiving shop or godown
Fewer cartons or pieces came	Actual count against the bill	Hold the difference and call the supplier
Carton or inner packs are damaged	Usable and affected quantity	Separate it before deciding return or adjustment
Item, flavour or pack is different	PO, bill and physical label	Hold it until the supplier confirms the next step

Item, unit and quantity match

Check first

Count and condition

Next action

Record at the receiving shop or godown

Fewer cartons or pieces came

Check first

Actual count against the bill

Next action

Hold the difference and call the supplier

Carton or inner packs are damaged

Check first

Usable and affected quantity

Next action

Separate it before deciding return or adjustment

Item, flavour or pack is different

Check first

PO, bill and physical label

Next action

Hold it until the supplier confirms the next step

Use this quick decision after the count and condition check:

What you find	Check first	Next action
Item, unit and quantity match	Count and condition	Record at the receiving shop or godown
Fewer cartons or pieces came	Actual count against the bill	Hold the difference and call the supplier
Carton or inner packs are damaged	Usable and affected quantity	Separate it before deciding return or adjustment
Item, flavour or pack is different	PO, bill and physical label	Hold it until the supplier confirms the next step

Compare the purchase order, bill and cartons

The purchase order shows what you asked for. The supplier bill shows what the supplier charged. The physical cartons show what arrived. These three may not match, especially when a busy delivery is unloaded without a count.

Check the item before you check the amount. A supplier may send the right brand in the wrong flavour, the right item in a different pack size or a similar product under a different item name. Do not save a different item under the nearest name just to close the delivery.

Check the unit before you calculate the quantity. Ten cartons of 24 pieces is 240 pieces only when all ten cartons contain the stated pack. If one carton has 18 pieces, record the actual pieces or keep the carton aside until the owner decides how to handle it.

Check the location as well. If the goods arrived at the Main Godown, record the receiving event there. If a branch later needs stock, move it as a separate internal transfer. Do not change the original receiving location because the purchase was approved at another office.

Count stock in the unit you actually sell or store

Many receiving mistakes start when the bill is in cartons but the item is sold in pieces. Decide the item unit before you save the purchase.

• Count sealed cartons when the outer pack is complete.
• Open and count pieces when a carton is broken or short.
• Keep carton and piece quantities together in the receiving note.
• Do not convert a damaged or partly filled carton into a full carton.
• Keep the same unit when you compare the purchase with the later sale or transfer.

If your team buys oil by case and sells bottles, write down the case count and bottle count that the team actually checked. Use the carton-to-piece stock guide when the unit conversion itself is the question.

Separate short, damaged and wrong goods

Do not put every carton into saleable stock because the bill has already been printed.

If fewer cartons came, note the actual count and keep the missing quantity in the supplier conversation. If the bill says 48 cases and 46 are present, do not quietly record 48.

If goods are damaged, count the usable and affected quantities separately. Keep wet, leaking, crushed or spoiled goods away from saleable cartons until the owner decides whether to return, replace, accept or adjust them.

If the item or pack is different, compare the physical label with the purchase order and bill. Hold it until the supplier confirms whether it is a replacement, a packing error or a return.

For the detailed short, damaged and wrong-delivery decisions, read what to do when a supplier delivery does not match.

Record the purchase at the receiving shop or godown

Once the count and condition are clear, save the purchase against the shop, branch or godown where the goods actually arrived. Keep the supplier, bill number, item, unit and quantity tied to the entry your team makes.

In Stock Register, choose the store or godown that received the goods and save the accepted purchase with its item, unit and quantity. Stock Tracking keeps that purchase alongside later returns, adjustments and movements, so the owner can trace the saved record when a supplier question comes back. Your team still counts cartons, checks damage and decides what to accept or return.

See the saved stock record

Stock Tracking shows the saved inward, outward and remaining balance in one item history. Your team still checks the cartons and decides what to accept, return or adjust.

See Stock Tracking

If the purchase was saved but the balance still looks wrong, use the purchase-stock troubleshooting guide before entering the bill again.

If goods go back to the supplier, use the purchase-return process for the quantity that actually leaves. If damage or wastage is confirmed while the goods are with you and there is no purchase or return event to record, use Stock Adjustment for the affected quantity with the reason. See how to record a supplier return.

Examples: the same receiving rule in three businesses

The receiving rule stays the same, but the handoff changes with the business. Here are three common situations.

FMCG distributor: 48 cases reach the main godown

Ravi Traders receives a supplier bill for 48 cases of a biscuit item at its Main Godown. The receiving pair counts 46 sealed cases. One extra case is crushed and has broken inner packs. Another case contains a different flavour.

The receiving note should say:

• Expected: 48 cases of the ordered flavour.
• Present: 46 sealed cases, 1 crushed case and 1 different-flavour case.
• Held aside: the crushed and different-flavour cases.
• Supplier follow-up: confirm replacement, return or acceptance before closing the difference.
• Purchase entry: only the quantity the owner confirms as received and saleable.

The important distinction is between the receiving note and the stock entry. The note keeps the physical count, condition and open supplier question. The stock entry keeps the purchase, item, unit, quantity, location and supplier that the business saves. Do not use a complete bill to hide an incomplete delivery.

Wholesaler: the purchase reaches the main godown, not the shop

A wholesaler receives 20 cartons at the Main Godown while the Shop has the next retailer order. Save the purchase at the Main Godown after the count. When 8 cartons move to the Shop, record that internal transfer separately. The Shop should not receive the purchase entry just because it is the location making the sale.

Small retailer: 24 packs arrive and one is crushed

A shop receives 24 packs of tea and finds one crushed pack. Keep 23 saleable packs with the good stock and hold the damaged pack aside with the bill reference. The owner then decides whether the supplier will replace or take it back, or whether a confirmed damage entry is needed. Do not make the damaged pack look saleable by recording all 24 as usable stock.

Put accepted goods away and hand over the open issues

After the count, move accepted cartons to the correct shelf, shop area or godown section. Mark held cartons clearly so the next person does not sell them or count them again.

The receiving person should hand over four things before leaving the delivery:

1. The bill or purchase order reference.
2. The actual and affected quantity.
3. The location where the goods arrived.
4. The owner or purchase person responsible for the supplier call.

For a multi-location business, the receiving godown and the selling branch may be different. Record the purchase where the supplier delivered it, then record an internal transfer when stock moves to another location. Read how to manage stock across multiple godowns.

Common receiving mistakes

Recording the bill quantity without counting

The bill may say 48 cases, but the team may receive 46, 47 or 48 with damaged packs. Count first and keep the difference visible.

Mixing held goods with saleable goods

A wet or wrong carton can reach the sales counter when it is stacked with accepted cartons. Use a marked holding space until the owner closes the issue.

Saving a different item under a similar name

This makes the stock number look tidy but hides the supplier mistake. Select the exact item only after the owner confirms what happened.

Recording stock at the approval office

The owner may approve a purchase from an office while the supplier delivers to a godown. The entry should follow the physical receiving location.

Treating an internal movement as a new purchase

When accepted stock moves from the Main Godown to a branch, use an internal transfer. It is not a new supplier purchase.

Simple inventory receiving checklist

Before closing a supplier delivery, ask:

• Do the item, flavour, size and pack match the purchase order?
• Is the unit the same on the bill, item record and physical stock?
• Did we count sealed cartons and open cartons separately?
• Which quantity is saleable, damaged, short or different?
• Which shop, branch or godown received the goods?
• Has the purchase been saved only for the quantity the owner accepts?
• Who will call the supplier, and where is that note kept?