COST

CONTROL in
HOSPITALITY
INDUSTRY
by: Jamaica Consolacion
CHAPTER 2
RECEIVING
 “
Objective
At the end of the chapter, the learner should be able
to:
1. Recall the pointers in receiving stocks;
2. Identify the tools and equipment used in
receiving;
3. Follow the effective receiving process;
4. Explain credit and delivery notes; and
5. Appreciate meat tagging
Pointers in receiving stocks
● Have the delivery person put the order in the receiving area of the kitchen.
● Obtain a copy of the delivery receipt with attached purchase order.
● Have a copy of the purchasing specifications available.
● Check the delivery quantity against both the delivery receipt and the purchase order
● Compare the prices on the delivery receipt to those on the purchase order to ensure that they match.
● Goods in damaged containers should be inspected.
● Cans badly dented or damaged should be rejected.
● Check and inspect the interior of food delivery vehicles for cleanliness and proper temperature
● Report and reject all uncovered or open perishable foods except fruits and vegetables. Frozen food items should be received frozen. Inspect
for possible Frozen-Thawed-Refreeze (FTR) abuse.
● Reject all open foods which directly comes into contact with the floor or ground while being delivered.
● All the foods delivered in refrigerated delivery trucks should be sampled and checked for correct temperatures.
● If everything is in order, sign the delivery receipt
● Process the paperwork by sending copies of the signed purchase order and the signed delivery receipt to the accounting department.
● Secure the goods in their proper storage area.
 Lesson 2
Receiving Tools
Tools and equipment used during
receiving
● Digital weighing scale
● Digital Professional Thermometer
● Box cutter
● Heavy Duty weighing scale
● Calculator
● Push Cart
Lesson 3
Receiving
Procedure
 Receiving Procedure
● A receiving procedure is a process where the receiving staff properly inspect all incoming
goods, mark them with tags or label, and record them as having received.
Scheduling Deliveries
● The usual practice in many hotels is to take delivery
of perishables items early in the morning and
imperishable and grocery items to be delivered in the
afternoon.
Importance of Invoice
● It is a document containing detailed information about the actual food
delivered. It is presented to the receiving clerk in duplicate by the
person making the delivery who expects the receiving clerk to sign
and return the second copy, thus acknowledge to the purveyor that the
hotel/restaurant has received the commodities listed. The original
invoice must be routed to the accounting department for paying the
bill.
The receiving clerks should rubberstamp all invoices. Stamping of invoice
is useful for the following reasons.

● It provides information on the date on which food items have been

received.
● It provides signature of the receiving clerk and voucher for the
accuracy of quantities, qualities, specifications and prices.
● It provides for the food controller’s verification of the arithmetical
accuracy of the bill.
● It provides for the signature approval of the bull for the payment by
the authorized individual before a check is drawn.
Receiving Procedures
● In order to ensure adequate control at the receiving stage, the following must be carried out.
1. All goods must be weighted, counted or measured.
2. All deliveries must watch the quantity ordered.
3. Inspect and check the quality of goods delivered in accordance with the specification and company standard.
4. Checking of price as per the pre-ordered form.
5. In case the quality and quantity of items delivered is not according to the purchase order or there is a short supply of items a
“credit notes’ or ‘credit memo’ is to be raised, filled out and signed by the delivery personnel and receiving clerk. In Case this
happens with daily deliveries of perishable items, the purchase officer must be immediately informed so an alternative
sources supply can be found.
6. Maintain a suitable record for all items received such as daily receiving report.
7. All items purchased in cases should be opened to ensure that the case contains the items/ food stuff as specified in the
delivery note.
8. All fruits and vegetables must be sampled to check for freshness and quality
Bill of lading document
● A proof of ownership of the goods being moved
● It is created by a carrier and attached to the goods
being delivered.
● The accounting department of the buyer uses the bill
of lading as a proof of receipt to verify that supplier
invoices should be paid.
Blind Receiving
● In this method there is no invoice/delivery receipt
accompanying the delivery.
The accounting office should also check prices and extensions as is done in
a standard receiving routine
● Store will receive the goods blind and reweigh/recount the goods received.
● Details of goods received in stores will be entered by the storekeeper on ‘receiving returns’ in triplicate. The storekeeper will only enter the
following columns in these forms:
1. Description of material
2. Quantity accepted
3. Description should be matched with the purchase order.
● All these three copies of the receiving returns will then be handled over the accounting department representatives at stores who will use
those to fill the store record cards.
● The original and first copy of the form will be sent to the accounting department
● The accounting office will then compare items such as quantities on the daily receiving return with those on the daily receiving report
received from receiving section to ensure that these agree.
● The accounting department will finally complete the original first copy of the receiving return by filling in the following columns;
1. Date of bill passing
2. Voucher number
3. Value of receipt
● The original will be filed month by month in the accounting department
● The first copy of the receiving return will be retained by the accounting department who will file them with the relevant vouchers for
payments to supplies

Advantage Disadvantage
• It is excellent method • It is an expensive and time
• It gives the best consuming procedure.
possible control • It puts extra burden to purveyors.
He has to make a separate list of
items for the receivers.
Lesson 4
Credit Note and Delivery Note
Credit note
● A monetary instrument issued by a seller that allows
a buyer to purchase an item or service from a seller
on the future date.
Delivery note/receipt
● A document accompanying a shipment of goods that lists the
description, grade and quantity of the goods delivered.
● The delivery notes normally comes with three copies.
1. First copy- retained in the receiving department
2. Second copy- signed by the senior member of the receiving
department and returned to the delivery man
3. Third copy- goes to accounting department
All delivery goods received must be recorded daily on goods
inward theses book. All goods must be categorized as:

● Food items
● Beverage and tobacco including containers or empties received
and returned.
● Non-food and beverage items.
● The original of all food and beverage delivery notes must be passed on to the food and beverage
controller. Finally these are sent to the bought ledger where all invoices will be attached with the
respective purchase order form and delivery note,
● These should again be checked;
1. To ensure that the delivery note and invoice have been properly signed by the receiving clerk and
the others.
2. To check the delivery note and invoice against the purchase order particularly for price.
3. To verify that purchase order is correctly authorized.
4. To check that the receiving sheet has been correctly completed from the delivery note or invoice
Lesson 5
Meat tagging
Tagging
● Is done for most expensive items such as special
processed meats like ham, fish, poultry and etc.
Tagging serves many purposes such as:
● Control expensive food
● Receiving department weighs and records each item against the specific weight of
range
● Assist in obtaining a more accurate daily food cost percentage figure
● Support in controlling the stock level of these items.
● Provides a references number to aid in issuing to the kitchen and when doing yield
testing.
● With clearly marked dates on the tags, it helps in efficient rotation of stocks.
In addition, meat tagging serves the
following
● Control an expensive items of foods or meat
● Ensure the receiving clerk weigh each item
● Checks individual weight of each item against the specification
weight.
● Provides a reference number to aid issuing to the kitchen and when
yield testing
● Assist in rotation of stock specially as per date on the tag
● Assist in weekly or monthly inventories as per weight marked on tags.