Frauds in the Receiving Department
FRAUDS IN THE RECEIVING DEPARTMENT (BY SUPPLIER) – There are many ways in which an unscrupulous person can defraud an operation.
- Packing, merchandise in excessive moisture or wrappings or ice to make weighing more difficult and to add more weight to it.
- Repackaging product and putting lighter weight in new crates while keeping the price same as for the heavier original crates.
- Placing satisfactory merchandise on top-level that is visible, but inserting merchandise of inferior quality underneath.
- No sending grade specified hoping it will not be noticed.
- Sending incomplete shipments with full bills and neglecting to send the remainder.
- Charging for boneless meat while leaving the bone in and excessive fat on the meat.
- Supplying short weighs.
- Using excessive packaging materials to increase weights.
- Delivering merchandise directly to the kitchen without passing it through the receiving department.
PREVENTIVE MEASURES
- The strict control of people working in the receiving department.
- Proper log entries for each and every article.
- To keep a proper check on incoming articles.
- Proper security to be maintained to prevent unauthorized persons from entering the receiving department.
FRAUDS IN THE RECEIVING DEPARTMENT- The prime objective of the receiving department is to ensure that the establishment has obtained the goods of the correct quality and at the agreed price. This is one of the most important departments and should be manned with fully trained persons who have the knowledge of receiving procedures as well as items being ordered. But if it is being staffed with people having no specialized knowledge, then it would lead to frauds in receiving. Some of such frauds are as follows:
- The quantity received is not in accordance with the purchase order i.e. in terms of quality and standard purchase specification.
- Accepting substandard quality due to ignorance or intentionally.
- Incorrect weighing equipment.
- Some tricks where vigilance is required.
- Highly iced fish
- Wet vegetables.
- The time gap between receiving and storing should be minimum to avoid any pilferage from the delivery trolley.
FRAUD BY CUSTOMERS:
- Deliberately walking out without paying.
- Unjustifiably claiming that the food or drink that they had partly or totally consumed was unpalatable and indicating that they will not pay for it.
- Disputing the number of drinks served.
- Making payments by stolen cheques or credit cards.
FRAUDS BY STAFF.
- Overcharging or undercharging for items.
- Stealing of food, drink or cash.
- Billing with used cheques.
- Bringing own liquor in and selling it
- Under pouring of peg
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