EFFECTIVE DATE: February 21, 2020
ISSUE #: 4
PRESIDENT: Juan Sánchez Muñoz
This document defines the policy and procedure for receiving and returning commodities
received at the University of Houston-Downtown (UHD).
There are no definitions associated with this policy.
3.1 Substitution of items ordered with a Purchase Order is not permitted without the prior
approval of the Purchasing Department. No approval will be granted unless substituted
items are of equal quality and are offered at the same or lower price.
3.2 Items must comply with the written specifications contained within the Purchase Order
and/or contract. Failure to do so by the vendor will result in nonpayment to the vendor.
3.3 Unless specifically indicated on the order, all shipments are delivered to UHD's receiving
dock or street location. The procedures listed below should be followed depending on
the condition of the shipment.
4.1 Requisitioning departments must inspect all shipments received against the Purchase
Orders and report any discrepancies to the Purchasing Department. Any discrepancy,
including noncompliance with specifications, shortages, overages, and any damages,
must be reported immediately but no later than fifteen (15) days after receipt of goods,
materials, or supplies.
4.1.1 No visible damage or shortage: Accept the shipment if the containers are not
crushed, torn, wet, or otherwise damaged.
4.1.2 Minor Visible Damage: Damage to the shipping containers should be noted on
the shipping document and signed by the delivery person before the shipment is
accepted. It is very important to note any minor damages in order to document
any claims for possible concealed damage.
4.1.3 Severe Visible Damage: If shipping containers are damaged in such a manner that
it is obvious the goods are badly damaged, the entire shipment may be accepted
or refused. There is no option to accept or reject a part of the shipment. The
vendor must be contacted and requested to reship the entire order (this assumes
the terms of shipment were F.O.B. Destination). If damaged commodities are
unloaded at your facility, immediately notify the vendor and request that the order
be reshipped. If the vendor abandons the merchandise (fails or refuses to pick it
up), contact Purchasing Department immediately regarding disposition.
4.1.4 Shortages: Any shortages of shipping containers, cartons, etc., are to be noted on
the shipping document and the Receiving Report and the partial shipment
4.2 Inspection of Merchandise: When merchandise is being unpacked, uncrated, etc., it
should be checked against a copy of the Purchase Order for shortages, compliance with
the order's specifications, and also any concealed damages. Any discrepancies should be
noted on the Receiving Report, which is then scanned into PeopleSoft Finance. The
carrier cannot be held responsible unless shipments are checked immediately upon arrival
and written reports are made to the carrier within fifteen (15) days of receipt.
4.2.1 Concealed Damage: The Purchasing Department should be notified in writing or
by email if damages are discovered after unpacking. The ordering department is
required to state on the shipping document "allow for concealed damages" when
4.2.2 Concealed Shortage: If there is a minor shortage (such as 11 of an item rather
than 12), simply note on the shipping document and receiving report, and deduct
the difference on the invoice. If it is a major concealed shortage, notify the
Purchasing Department in writing or through email. The vendor will ship the
needed goods at their expense.
4.2.3 Substitutions: Substitutions must be approved by the UHD Purchasing
Department on term contracts, open market, and schedule orders. For delegated
orders, the UHD's Purchasing Department must approve the substitution.
4.3 F.O.B. Destination: UHD Purchasing recommends that all orders be placed as "F.O.B.
Destination" freight prepaid and allowed. Under these terms, the risk of loss to goods
does not pass to UHD until the goods are delivered to the stated destination and UHD
has accepted the shipment. If goods are not accepted or received, the vendor is
responsible for reshipping new goods at their expense.
4.4 Inside Delivery: Inside delivery must be specified in the Invitation for Bid, including the
exact location and available access or access limitations. It is the sole responsibility of
the vendor for making inside delivery and removal of packing materials. The freight company is not responsible. If there is a problem, the vendor should be contacted
4.5 Returned Items by the Department: The department shall notify the Purchasing
Department for any returned items on purchase order transactions. The department will
note on the Receiving Report the returned item(s) and submit it to the Purchasing
Department. Accounts Payable is notified.
4.5.1 For non-purchase order transactions, the returned item(s) will be noted on the
vendor's invoice. If no other items are listed on the invoice, the invoice will be
filed pending receipt of a credit memo from the vendor. If other delivered items
are listed on the invoice, the department should prepare a Purchase Voucher to
pay for those items only, scan the invoice, and forward both to Accounts Payable.
4.6 Failure to Meet Specifications on Purchase Orders: UHD Purchasing Department will
notify the vendor in writing and request that the problem be corrected. If it is a term
contract or an open market order processed through the Comptroller of Public Accounts
(CPA), the Purchasing Department will also notify the CPA. Payment to the vendor should
be withheld until the merchandise meets or exceeds all specifications without exception.
Responsible Party (Reviewer): Purchasing Coordinator
Review: Every three years on or before August 1st
Signed original on file in Employment Services and Operations.
Issue #1: 01/19/00
Issue #2: 08/12/10
Issue #3: 09/16/14 – Reaffirmed as Issue #4
There are no references associated with this policy.