Goods in, checked against the order

At one o'clock the drinks lorry backs into the yard with the order the buyer sent two days ago. The driver wants a signature and to be on his way. The warehouse lead wants to know one thing first: is everything that was ordered actually on the pallet? This tour shows goods in done against the purchase order, case by case, so the answer is known before the driver leaves.

Step by step

1. Scan the purchase order number. The warehouse lead scans the number on the delivery paperwork, and the expected lines from that purchase order appear on screen with the supplier's name and a "Checking" badge. There is no retyping of what was ordered.

2. Read ordered against received. Each line has three columns that matter: what was ordered, what has been received so far, and a check that says Matches or flags a gap. At the start everything is still to count.

3. Scan each case. Counting is scanning. Every case that comes off the pallet is scanned, and its line goes up by one. This is quicker than counting and writing, and it catches the case of 1 litre squash that was sent in place of 500ml, because the barcode does not match a line on the order.

4. Spot the short line. When the pallet is empty, one line has not caught up. In the tour, the orange squash came three cases short. The check column shows "Short 3" instead of Matches.

5. Save the short line as received short. You do not wait for the missing cases and you do not pretend they came. The line is saved with what arrived, and the three missing cases stay open on the purchase order. When you speak to the supplier, both of you are looking at the same gap.

6. Type a new cost where the price changed. The supplier's invoice shows a higher price on one line than the purchase order did. The warehouse lead types the new cost on that line, in the costs panel beside the count. Every other line is left empty and keeps the cost already on file, marked Same.

7. Save and add to stock. One button saves the goods received note. The stock goes up in the warehouse at that moment, so the till, the trade counter and the reps all see the new quantities this afternoon. The short line stays open on the purchase order for the rest to follow.

What the screen tells you at each stage

Why the new cost matters more than it looks

A price rise of 30p a case on cola sounds small. But your profit reports, your stock value and the list of products priced below cost all work from cost. If the new cost is never entered, the system keeps valuing cola at the old price and keeps telling you the margin is better than it really is. A month later, the profit by product report looks healthy and the bank balance does not.

Here is a simple example. Cola sells at £8.75 a case before VAT. If it cost you £7.00, the margin is £1.75, which is 20%. If the supplier puts the cost up to £7.30 and you do not record it, the system still shows 20%. The real margin is £1.45, about 16.6%. On 150 cases a week, that is £45 a week of profit that only exists on paper. Typing the new cost on the line at goods in is what keeps the reports honest. Our guide to stock valuation explains how cost flows into what your stock is worth.

Tips for goods in

• Check before you sign. Once the driver has gone, a short delivery becomes an argument about who miscounted.
• Scan, do not count by eye. Pallets are wrapped, cases are stacked, and a missing layer at the back is easy to miss.
• Keep the supplier's paperwork with the GRN. If you dispute a short line or a price, you need both.
• Put the stock away after saving. The system says it is in the warehouse; make sure it is on the shelf where the pick list will send people.

Common mistakes

Saving the full order "because the rest is coming". If you record goods you have not received, the stock is wrong until they arrive, and the reps will sell cases that are not there.

Changing every cost to the invoice price "to be safe". Only change what actually moved. Typing a cost on every line invites typing errors on lines that were fine.

Booking in without the purchase order. A delivery with no order to check against has nothing to catch a short line or a wrong product.

Leaving the short line forgotten. A line left open on the purchase order is a reminder that the supplier owes you goods. Chase it, or close it if the supplier has cancelled it.

Part deliveries and what happens next

A purchase order can be received in parts. Today's delivery fills most lines; the three cases of squash stay open. When they arrive later in the week, the same order is scanned again and only the missing quantity is expected. Once every line is received, the purchase order is complete.

What to do next

With stock up, the reorder plan you worked from this morning should look shorter. If the counts from goods in keep disagreeing with what the system thought was on the shelf, it is time for a count; see how to do a stocktake. For the bigger picture on keeping stock right day to day, read stock control.