The goods have arrived, but the invoice hasn't yet. This is an everyday occurrence in the supply chain and creates a gap in record-keeping.
The product is physically in the warehouse, but not in the system. The warehouse worker says "it's here," the system says "it's not." This gap is closed by the manufacturer's dispatch note.
In this article, we explained what a manufacturer's dispatch note is, when it is used, and how it connects to the goods receipt process.
Table of Contents
What is a manufacturer's dispatch note?
A manufacturer's dispatch note is the document that records goods arriving from the supplier. It ensures that shipments arriving before the invoice can enter stock.
The document generates a stock movement but does not yet create a financial liability. When the invoice arrives, the two are matched.
This structure is the mirror image of the dispatch note-invoice relationship on the sales side. There goods go out, here goods come in.
We explained the logic of the document chain in the sales document chain article; the same principle applies on the purchasing side.
When is it used?
If the invoice arrives later. Many suppliers issue consolidated invoices at the end of the month, while goods arrive day by day.
If there are partial shipments. When an order arrives in parts, each shipment is recorded with a separate dispatch note.
If a control period is required. Goods have arrived but are awaiting quality control. They can be taken into the quarantine warehouse with a waybill; multi-warehouse stock management see the article.
If working on consignment. The goods are with you, but ownership belongs to the supplier; they need to be tracked separately.
Goods receipt process
Goods receipt is the most skipped yet most valuable step of the purchasing process. The checks performed here prevent all subsequent problems.
The correct flow is as follows: the incoming shipment is matched with the order, quantities are counted, products are checked, and a receipt record is created.
Acceptance by scanning barcodes prevents product mix-ups. If the supplier's barcode is defined, scanning works directly; multi-barcode management see the article.
The person receiving the goods and the person who placed the order must be different. This distinction is a simple yet effective internal control; authorization supports this.
What happens when the invoice arrives?
When the invoice arrives, it is matched with the waybills. A single invoice can cover multiple waybills.
During matching, quantity and price are checked. Quantity is verified from the waybill, and price from the order.
This three-way check is the most effective way to prevent overpayment; three-way matching we detailed in the article.
Incoming documents also need to be processed regularly; we explained the routine in the incoming e-invoice inbox management article.
Discrepancies and return situations
Incoming goods do not always match the order one-to-one. There may be missing, excess, or damaged deliveries.
In case of a short delivery, the remaining quantity remains as an open order and is tracked. In case of an excess delivery, a decision is made whether to accept it or not.
Damaged goods must be recorded separately. If they enter directly into sellable stock, there is a risk of them being sent to the customer.
The return process must also be documented; incoming shipment and return management you can check out the article.
Traceability and lot information
For products with lot or serial tracking, this information must be recorded at the time of goods receipt. It cannot be completed afterwards.
The supplier's lot number must also be recorded. When a quality issue arises, it is necessary to know which batch it came from; batch lot tracking check out the article.
In sectors such as food and pharmaceuticals, this is a necessity; lot traceability in food production we discussed the chain in the article.
All these records purchasing module and inventory module are kept linked between them.
Organizing the goods receipt area
Goods receipt does not function well without physical organization. If it is not clear where the incoming goods will be placed, control cannot be performed either.
Defining a separate receiving area is the most practical solution. Incoming goods are first brought here, counted, and inspected; only then are they placed on the shelves.
Goods placed directly on shelves without waiting for inspection cannot be counted afterwards. When a discrepancy arises, it cannot be known whether it belongs to the supplier or is a warehouse error.
In sectors requiring quality control, a separate quarantine warehouse is defined. Goods in this area do not appear in sellable stock; multi-warehouse inventory management see the article.
Damaged goods must also be kept separate; until the return process is completed, these items can neither be sold nor shown normally in the inventory.
Measuring goods receipt performance
Goods receipt is the point where supplier performance is measured. The data generated here feeds into subsequent purchasing decisions.
The first indicator is schedule compliance: did it arrive on the ordered date? This data is automatically extracted by comparing the order and receipt dates.
The second is quantity accuracy. The ratio of shipments arriving short or over shows the supplier's operational discipline.
The third is the quality rate: how much of the incoming goods turned out to be damaged or substandard? This ratio is a strong argument in price negotiations.
When these three indicators are read together, it becomes clear whether the cheapest supplier is truly the most suitable; supplier evaluation criteria you can check out the article.
Frequently asked questions
How are goods arriving without a delivery note recorded?
You can create your own goods receipt record. The lack of documentation must be discussed with the supplier.
Does stock cost originate in the delivery note?
It depends on the cost method. The price is finalized with the invoice; clarify the implementation details with your financial advisor.
Can goods receipt be done via mobile?
Yes, warehouse operations are suitable for mobile use.
Can a single delivery note cover multiple orders?
Yes. The supplier may combine several orders into a single shipment; line-item matching manages this situation correctly and the remaining quantity of each order is tracked separately.
Is consignment stock included in the inventory?
It is recommended to be tracked as a separate warehouse and separated in reports.
The producer delivery note is a simple yet critical record that bridges the time gap between the goods and the invoice. When used correctly, the warehouse reality and the system always say the same thing.
Three things are enough to establish the goods receipt order: a separate receiving area, the rule of receiving by counting, and linking the receipt record to the order.
Without these three, no data is generated regarding the quantity, quality, and timing of the incoming goods. Supplier performance cannot be measured for this reason either.
Once the order is established, the most frequent dispute between the warehouse and accounting also ends: did the goods arrive, how much arrived, which invoice is it? The answers to all three questions reside in the same record.
by consulting with the EQLEM team, you can configure your goods receipt and document matching workflow.