Procedure 4-22

Damages and Shortages

Responsible Officer: Chief Financial Officer and Vice President

Sponsoring Department: Procurement Services

Revision Date: 20 April 2016

Errors or changes to:

Procedure Objective

This fiscal procedure provides direction for checking delivered merchandise and notifying appropriate departments of any discrepancies or problems.


Merchandise should be checked as soon as it is delivered in order to allow timely notifications to other departments if needed. Many suppliers have notification deadlines for receiving and responding to reports of the delivery of unacceptable merchandise and the payment process may need to be halted until corrections are made.


All departments who order and receive delivered goods.

Website Address for This Procedure

Related Statutes, Policies, Requirements or Standards

UT System Administration Policies and StandardsOther Policies and Standards
UTS159, Purchasing

Regents' Rules and Regulations, Rule 20901, Procurement of Certain Goods and Services


If you have any questions about this procedure, contact the following departments:

SubjectOffice NameTelephone NumberEmail/URL
All topics in ProcedureProcurement
Website accessAdministrative Information




Department Receiving Delivered Goods
  • Checks delivered merchandise as soon as it is received
  • Notifies appropriate department if merchandise is damaged, incorrect, or incomplete



Section I. Retain Order Documentation Until Merchandise Is Checked

Departments ordering and receiving equipment should keep all packing, crates, cartons, etc. that arrive with the merchandise until a thorough examination has been completed. Freight carriers require the original packing, carton, etc. if called upon to investigate a damage or loss claim.

Section II. Examine Merchandise When It Is Delivered

If examination of the merchandise indicates damages or shortages, or if the merchandise delivered is not what was ordered, then the department receiving the delivered goods should contact the appropriate department immediately.

  1. If Procurement Services placed the order, then the department receiving the delivered goods should contact the appropriate Procurement Specialist. The Procurement Specialist will contact the supplier and Property Management to arrange returns, exchanges, etc., and amend the purchase order, if necessary.
  2. If the shipment arrived in Property Management and was then delivered to the department, then the department receiving the delivered goods should contact the Property Management Department at extension #2-3276 immediately.

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