PUR 3.10 - Receipt of Goods and Services by University Departments
Responsible Office(s): Purchasing Services                                                              Effective:  September17, 1996

A.    Purpose.

Explains policies and procedures concerning the following:

- Departmental receipt of goods and services procured through the university purchasing
   system
- Prompt acknowledgment of receipt to facilitate timely payment to vendors
- Departmental handling of unsatisfactory goods or services.

B.    Scope.

Applies to all university departments and activities receiving goods and services procured through the university purchasing system. The receipt of items not purchased via the university's purchasing system (such as Post Office mail, Bookstore resale items, and Library books) is not governed by this procedure.

C.    Policy.

Payment for purchases of supplies, equipment, and services is processed only after receipt has been documented. Therefore, it is very important that receiving is acknowledged promptly and accurately to prevent undue payment delay. University departments generally acknowledge receipt by forwarding to Purchasing Services the receiving (pink) copy of the purchase order, which has been signed and dated by the individual accepting delivery of the item from Central Receiving. (See AUX 9.10). All communication with vendors (including communication regarding the receipt of unsatisfactory items) should be handled by Purchasing in order to track invoices, credits, and payment.

D.    Procedures.

Immediately upon receipt of goods or services, or as soon as possible after receipt, university departments should:

- Open and inspect all packages received for completeness and damage.
- Verify that items and services are received as indicated on the purchase order.
  (Two copies of the purchase order are sent to the ordering department upon issuance.
  The blue copy of the purchase order is for departmental records, and the pink copy
  is the "receiving copy.")
- Save all boxes and packing materials until the user is completely satisfied with the
   performance of the purchase.

1.    Receipt of Satisfactory Equipment, Supplies, and Services.
After verifying that items or services are complete and satisfactory, departments must sign, date, and return the pink copy of the purchase order (along with the packing list if applicable) to Purchasing within two days of receipt.

When partial shipments are received, departments should make a photocopy of the pink copy of the purchase order. The photocopy should be signed and dated, and the quantity received noted thereon. The photocopy of the purchase order, along with any applicable packing lists, should be sent to Purchasing. The pink copy should be retained until the balance of the order has been received; then it should be signed, dated, and sent to Purchasing. It is essential that each partial shipment is acknowledged within two days of receipt. Any delay in returning the pink copy (including partial shipments) holds up payment to the vendor and may adversely affect other orders placed with that vendor.

2.    Receipt of Unsatisfactory Items.
Departments receiving unsatisfactory items (damaged or unwanted items, over shipments, or wrong shipments) should follow the procedures listed below. Damages may be either visible (package is damaged) or hidden (package is intact, item inside is damaged).

a.    Notification to Purchasing.    When unsatisfactory items are received, Purchasing must notify the carrier within seven days after delivery to campus so that a claim may be processed and items repaired or replaced. Therefore, it is essential that departments inspect packages immediately upon receipt and notify Purchasing promptly by telephone, FAX, or E-mail of any unsatisfactory items. The department should provide Purchasing with the following information:

- Vendor
- Purchase order number
- Delivery date
- Reason why the item is unsatisfactory or nature of damages
- Invoice number (if known) and packing slip number

b.    Acknowledgment of Receipt.    Unless instructed otherwise by Purchasing, the ordering department should sign and date the purchase order, indicate why the item is unsatisfactory, and return the pink copy of the purchase order and applicable packing  list to Purchasing within two days of receipt of the items.

c.    Return Shipment to Vendor.    The department is responsible for preparing the supplies or equipment for return shipment to the vendor. The department should use the original packing for return shipment whenever possible because the original packaging is necessary in order to file a claim for hidden damages and may be required when returning items covered by warranty. The department may be responsible for return shipping costs and/or restocking charges for unwanted items. (See Procedure AUX 4.20 for further instructions regarding departmental return shipments.)

3.    Receipt of Unsatisfactory Services.
If a service performed is unsatisfactory for any reason, notify the purchasing agent immediately by telephone, FAX, or E-mail. Purchasing will contact the service provider for resolution. The department should not return the pink copy of the purchase order to Purchasing until the service has been satisfactorily performed or Purchasing notifies the department that the service contract has been canceled.

4.    Receipt of Standing Orders.    See PUR 1.21.

5.    Receipt of New Vehicle Purchases.
Purchasing Services will notify the ordering department when the vehicle is ready for pickup at the dealer. Instructions for picking up the vehicle are attached to the pink copy of the purchase order. The ordering department should follow those instructions. Upon receipt of the vehicle, the ordering department should sign, date, and return the pink copy of the purchase order to Purchasing.