Goods receipt checks: Your key to smooth-flowing invoice releases

Goods receipt checks are a formalized way of checking incoming goods against the original order.

Let’s say a shipment of 5,000 screws arrives at your company. An employee checks the screws against the quantity, quality and specification listed on the delivery note. If the delivery note and shipment match, the checked goods are released, triggering the invoice workflow and other downstream processes. The goods can now be moved to the warehouse or production.

The importance of goods receipt checks

Goods receipt checks are critical to ensuring you only accept non-defective, correct goods from the get-go — and this factors hugely into your quality assurance. Damage sustained in transit or other defects are identified early to head off any downstream issues for production, warehouse management or invoice release at the pass. Your workflows keep running smoothly and efficiently, without any unexpected interruptions.

Here’s why goods receipt checks are important for procurement processes:

• Incorrect deliveries or damaged goods can lead to production downtime and incur costs.
• Goods receipt checks prevent issues down the line from inconsistencies between goods ordered, delivered and paid for.
• Supply shortages are reported in good time, ensuring companies act within product liability and complaint deadlines.

Goods receipt checks follow a clearly structured process designed to make absolutely sure that incoming goods meet the agreed specifications. There are typically five key steps.

Step 1: Receive goods

The goods arrive at the warehouse or receiving area. In paper-based processes, the vendor directly hands over the delivery note to the recipient. But there’s a more efficient way. With a digital delivery note from the vendor, the system can automatically read the information and directly send the data to where it's needed.

Step 2: Check goods

Either the system or a human then checks the shipment data against the original order. Most companies use a standardized checklist:

• Is the vendor data, order number, invoice number, etc. correct?
• Is there any visible damage to the packaging?
• Are there any deviations between the quantities delivered and those ordered?
• Are the delivery note, invoice and any other relevant documents present and correct?
• Do the goods meet quality standards?

Step 3: Documentation

For companies, the seamless documentation of incoming goods — including information on quantity, any damage or defects, and inspection protocols — is a legal requirement in many countries.

Typically, the information is captured digitally via an ERP system or document management system (DMS). All documents and inspection protocols must be kept in an audit-proof archive for the given retention period to safeguard compliance with legal traceability requirements.

Step 4: Quality management

The goods are quality checked in line with predefined procedures. Whether these are random checks, material tests or visual inspections all depends on the nature of the goods. For instance, in production raw materials are checked for defects or for their characteristics. By contrast, the food industry might require sensory tests or lab reports to verify shelf life and freshness, while the electronics industry relies on functional tests.

Step 5: Launch workflows

Any deviations or missing items identified during goods receipt checks are directly reported to the responsible department — usually procurement — and the escalation process triggered. Otherwise, provided everything checks out, the shipment is released. This triggers the invoice workflow and the goods are either moved to the warehouse or are taken directly for further processing.

Hi Doxi, what are the benefits of goods receipt checks?

Most modern ERP systems are capable of handling digital goods receipt capture. For example, SAP’s ERP system uses the transaction code MIGO — i.e. it posts the incoming goods against the order and the goods are automatically recorded in the system. How it works:

• Post goods receipt: You call up the MIGO transaction and enter the order number. SAP displays the ordered articles and quantities.
• Check goods receipt: The SAP MM (Materials Management) system checks the delivered items and quantities against the order data in SAP, flagging up any deviations.
• Check quality: If your company uses SAP QM (Quality Management), the system automatically sends a check request. Or you can follow manual inspection protocols.
• Create goods receipt document: The system creates a goods receipt confirmation for verified goods. SAP then posts the items to the warehouse and updates the inventory.
• Launch invoice verification: MIRO integration (invoice verification) checks the posted goods against the order, to ensure you only pay for correctly received goods.

The Doxis enterprise content management system (ECM system) integrates with SAP and other ERP systems to create a fully automated platform for the efficient management of your shipping documentsm, from capture to filing to audit-proof archiving.

Automated capture and structured filing

• Doxis accesses new delivery notes available in SAP via the interface.
• The system automatically recognizes the document type and files the delivery note matched to the order confirmation in the digital supplier file, traceable and accessible at any time.
• All goods receipt documents are sent to the audit-proof archive for the legal retention periods.

Important to know: if the delivery note is part of an invoice, it also needs to be stored in the audit-proof archive.

Efficient invoice verification and release

Doxis is capable of far more than a classic DMS, like also speeding up processes that are downstream of goods receipt. Doxis can reconcile inbound invoices with the relevant order confirmation or delivery note. Provided incoming goods are correctly checked and the relevant data is captured, Doxis independently detects whether the invoice contents are as they should be. Just a quick human check of the invoice before release, and you’re done. It significantly speeds up your invoice release process, saving time and effort.

Unlock synergies for your business by combining ERP systems such as SAP with ECM systems like Doxis and reduce manual processes, minimize errors and improve transparency in goods receipt. Digital systems automatically capture incoming goods, reconcile them in real time with orders and invoices, and immediately flag up deviations.

Doxis also seamlessly documents inspection reports and goods receipt data, all in compliance with legal requirements. Not only do your goods receipt processes benefit, you even speed up downstream workflows including invoice release. The result: enhanced efficiency, lower error rates and transparent, compliant documentation.

Want to see it in action? Get in touch for a free, no obligation demo.

FAQs on goods receipt checks