WAREHOUSING

POLICIES & PROCEDURES

Code: xx/xx/xxxx Status: Internal Created by: Gentjan TAGA

Date: 23/02/09 Approved by:
TABLE OF CONTENTS

Receipts and acceptance Page 3

Storing and Controlling of goods Page 6

Code: xx/xx/xx Status: Internal 2/8

Subject:
RECEIPT AND ACCEPTANCE

1. Purpose and Scope:

Control should be established over goods and services received as a basis for determining and
recording the liability for goods and services received
General:
The physical receipt of all purchased goods should be the responsibility of a receiving
department or designated individual. The receiving function should inspect goods for conformity
with specifications on purchase orders. Quantities should be verified by counting, weighing, or
measuring. Receipt and acceptance of a shipment should be documented on a receiving report
(or on a copy of the purchase order utilized for such purpose) with copies of the receiving
reports being routed to the purchasing and accounting departments.

2. Responsibilities:
PURCH STAFF Stock-keeper – Requestor of Goods.
3. Procedures
Inspection of All Goods and Services
PURCH STAFF i. Upon receipt of any item, the following immediate action should occur:

REQUESTOR  Check the bill of lading for the correct delivery point.
 Verify the number of containers with the bill of lading.
 Examine containers for exterior damage.
 Note on the bill of lading any discrepancy (i.e., missing containers,
damage, etc.)
 Sign and date the bill of lading.
 Retain a copy for the Purchasing department.
Stock keeper/
ii. When goods are moved to another area (Warehouse) for thorough
Requestor
inspection, the following inspection procedures should be performed:
 Remove the packing slip from the container.
 Remove from the Purchase department file the corresponding purchase
order.
 Compare the description of goods and quantity per the purchase order to
the packing slip
 Examine goods for physical damage.
 Count of weigh items. Similarly packaged times may be counted on a test
bases, if deemed appropriate. If goods are of a high dollar value and
subject to breakage from shipment, the firm may want all goods counted
and tested upon receipt to avoid delays in production when parts are
found to be defective.
 Make an indication of the counts on the copy of the purchase order. The
inspection process should be timely. Delays in inspection can cause
delays in business operations due to material shortages, and inaccurate

Code: xx/xx/xx Status: Internal 3/8

 accounting information can be caused by inventory and accounts payable
not being recorded on a timely basis.

Stock-keeper/ Preparation of Receiving Request

REQUESTOR
1. A receiving report should be prepared. The receiving report should be
designed to a specific set of requirements.
 A copy of the purchase order
 A copy of the purchase order with quantities omitted to improve the
likelihood of independent verification or count of quantities

The receiving document should contain the following information:

(a) Prenumbered. Receiving documents should be printed
with sequential numbering. This is extremely important in gaining
control over all receiving documents written.
(b) Date of receipt.
(c) Incompleteness. In the event goods received are less
than the full amount purchased, the incompleteness should be
noted on the receiving report. A copy of the incomplete purchase
order should be retained by the receiving department until such
time as it is complete.
(d) Signature of employee in charge of making inspection.
Obtain a purchase order, which is available on the Net under the Following
path \\x:\Policies and procedures\Purchasing Policies and Procedures\ Forms

Receiving Documentation Filed in Warehouse and Sent to Purchasing

Stock-keeper
(e) After inspection, the receiving report, with the attached
copy of the purchase order, the packing slip, and the bill of lading,
should be sent to the purchasing department. A copy of the
receiving report and the related purchase order should be filed in
the warehouse.

Proper Communications Between Departments

Stock-keeper/ The Warehouse/Requestor department should contact the purchasing
Requestor department if any order has an obvious discrepancy (physical damage, wrong
item delivered, quantity error, etc.) The purchasing department should notify
the vendor and in an expeditious manner give the receiving department
direction regarding the disposition.

Code: xx/xx/xx Status: Internal 4/8

User Inspection and Approval of All Services Received
Departments
Service that are received should also be inspected or reviewed by the user
department to determine that the work was done in accordance with the
purchase order or contract. Approval by the user department should be
documented on the purchase order copy or stated in memo form and sent to
the purchasing department.

If the work is of a confidential or highly technical nature, it may be desired to

have an officer of the company review the documentation for inspection and
approval of services received.

Code: xx/xx/xx Status: Internal 5/8

Subject:
Storing and controlling of Goods

1. Purpose and Scope:

Control should be established over goods and services received as a basis for determining and
recording the liability for goods and services received

2. Responsibilities:
Warehouse Stock-keeper
3. Procedures
Goods are sent directly to a central storeroom area from receiving, such a
Store keeper
transfer should be noted on the receiving report. The central storeroom
area should have the following procedures to account for and control the
goods:
(a) Restricted access. Access to the storeroom should be restricted to
authorized personnel.
(b) Complete inspection prior to recording. Warehouse staff will
complete its receiving inspection prior to recording incoming
inventory into the inventory database (F5)
(c) Identify and Tag all received inventory. The warehouse staff will
identify and Tag (label) each received item the correct part number
and description. For this reason, if bar code scanner is used, the
warehouse staff will print the bar-code identification labels for all
incoming materials that include the part number and description of
each label.
(d) Record all receipts into inventory database. All items received after
labeling will be registered into inventory database. A Receipts of
materials (Flet-hyrje) need to be printed from F5 in three copies.
(e) Materials should be issued from the storeroom only on receipt of one
of the following documents:
(1) An authorized bill of material supporting an approved
(2) An approved materials requisition as attached

In any event, an appropriately authorized document should be created to

account for the movement of materials, both for Capital Asset production
control and accounting process. These documents serve as authorization to
update perpetual inventory records for issues of material to production and
should be prenumbered or subject to some type of batch control so that it can
be ascertained that all transactions have been processed and recorded.
The document called Materials Issued (Flete Dalje), will be prepared by the
storekeeper based on the materials requested by the requestor.

Code: xx/xx/xx Status: Internal 6/8

 The document will be created automatically by the Accounting Software F5,
after the input information of the Items issued from warehouse.
The document should be signed by the Storekeeper and by the requestor or
receiver of the goods when the goods are delivered.
Material Requisition Form (MRF):
MRF is prepared by the user departments and should have at least the
following specifications:
1. Date of completion;
2. Project ID, is the code of the CAPEX Works to be done.
Generally the project document is prepared in advance from the
completion of MRF, and in this case is only referred to it to do
reconciliation with the Project. In case there is no project please
refer as N/A
3. Client ID: relates to the Client code when materials are requested
for Client installations. If this is not the case please refer as N/A
4. Trouble Ticket: is the number of the TT issued form Technical
department when the work is for support of clients of defects to
be repaired and maintained on ABCOM network or other
equipment. If not the case please refer as N/A.
5. Reason form request. On this field should be written specifically
why the materials are been requested. (ie. Construction of the FO
from Head-END- to Medreseja zone from Group 1 or the name of
the head of Group - Filan Fisteku)
6. Line of Budget. For each MRF should be refered the line of
budget Capex or Opex.
7. Requestor should sign the MRF and be responsible for the
fulfillment of it
8. Each MRF need the signature of MANAGER of the Requestor
who approves the MRF.
9. When the MRF is received from the Storekeeper is signed by
him.
MRF should be prepared in 3 (three copies), one for the requestor, one for the
Storekeeper and one to be sent to accounting.

MRF should be sent to Warehouse at least 5 working hours in advance from

the time of delivery of goods, in order to give time to Warehouse to prepare
the materials for delivery.

Materials Issued Document (MID) is prepared by Storekeeper in 3 (three)

copies signed by Requestor of Materials and Storekeeper. One copy is given
to requestor, one kept in warehouse and one copy sent to accounting. The
copy sent to accounting should be associated (attached) with the MRF.

Copies of the MRF and MID sent to Accounting are reconciled by the
Inventory Supervisor for differences between these two documents.
Differences if any are consulted and investigated with Warehouse and User
department

Code: xx/xx/xx Status: Internal 7/8

 Physical Inventory
Inventory
On monthly basis Inventory Supervisor performs by selection physical checks
Suppervisor
of the inventory outstanding balance.
The findings of the control are matched with accounting records and
differences identified and investigated.
The report of the findings is sent to Chief of accounting, CC CFO for further
actions.
At year end a complete physical inventory is done for all items within the
Warehouse. The inventory is performed by a commission from different
department participants. Findings are investigated and if differences the
accounting is corrected.

Code: xx/xx/xx Status: Internal 8/8