The Small-Business Purchase-Order Receiving Checklist
By Ty Fisher, founder of Fisher Software
Inventory errors often begin at the receiving door. A consistent receiving process ensures that the quantity added to inventory matches what physically arrived—not what was originally ordered or printed on an invoice.
Before opening the shipment
- Match the supplier and purchase-order number.
- Inspect boxes for damage and photograph significant damage before unpacking.
- Keep different purchase orders separated during counting.
Count the units that actually arrived
Do not receive the full purchase order automatically when a shipment is short. Record each delivered quantity, leave missing units open or backordered, and note substitutions separately.
Verify product identity and cost
- Confirm SKU, barcode, size, color, pack quantity, and unit of measure.
- Compare invoice cost with the purchase-order cost.
- Separate damaged, expired, or incorrect products before they enter sellable stock.
- Record shipping, tax, or landed costs consistently if they affect product profitability.
Close the loop
Update inventory only after verification, save the receiving record, report discrepancies to the supplier, and retain the documentation with the purchase order. Partial deliveries should remain visible until resolved.