When you’re running a restaurant, there are several documents that you need to take care of. If you’re new to this game and don’t know about the necessary documents that are important to take care of, this guide will help you. We will specifically talk about the documents that are important while procuring ingredients for your restaurant.  We will explain to you in detail about documents like purchase order, delivery order, invoice, goods received note, and 11 other documents. We will explain what role these documents play and how you can manage them effectively. 

1. Purchase Order (PO)

A purchase order is a formal document you send to suppliers when you need to order ingredients, equipment, or other supplies. It clearly states what items you want, how much you need, the agreed-upon prices, and when you expect delivery. This document creates a clear record of your request, helping prevent misunderstandings between you and your supplier.

When you use a purchase order, both you and the supplier have a written agreement. This makes it easier to track orders and resolve disputes if items arrive late, damaged, or incorrect. Without a PO, you might receive wrong quantities or face unexpected price changes. A study by the Chartered Institute of Procurement & Supply found that 30% of supply chain problems happen because of poor documentation. Using POs helps you avoid these mistakes and keeps your orders accurate.

2. Delivery Order (DO)

A delivery order is a document that comes with your shipment. The supplier prepares it, and the delivery person brings it along with your goods. It lists what items are being delivered, their quantities, and other important details. When the delivery arrives, you should check the items against the DO to confirm everything matches.

If the items don’t match the delivery order, you can note the differences before signing for the delivery. This protects you from paying for missing or incorrect items. Some suppliers may try to charge you for goods you never received. A DO helps you catch these errors early and ensures you only pay for what you get.

3. Invoice Bill

An invoice is a bill from your supplier that shows how much you need to pay for the delivered goods. It includes details like the item descriptions, quantities, prices, taxes, and the total amount due. The invoice also states payment terms, such as whether you need to pay within 7, 14, or 30 days.

You should always compare the invoice with your purchase order and delivery receipt. Sometimes, suppliers make billing mistakes, charging you for extra items or higher prices than agreed. Late payments can also cause problems—42% of businesses experience payment delays, according to Atradius. Keeping invoices organized helps you pay on time and maintain good relationships with suppliers.

4. Goods Received Note (GRN)

A goods received note is a document you fill out when stock arrives at your restaurant. It confirms that you have checked the delivery and that the items match what you ordered. The GRN includes the delivery date, supplier name, item quantities, and any notes about damaged or missing goods.

Without a GRN, you might accept incorrect or spoiled items without realizing it. Later, when you check your stock, you might find shortages or unusable products. A survey by the Food Standards Agency found that 15% of food deliveries have errors. A GRN helps you catch these mistakes right away so you can fix them before paying.

5. Credit Note

A credit note is a document a supplier gives you when there’s a problem with your order, like damaged goods, wrong items, or overcharging. Instead of giving you a cash refund, the supplier issues a credit that reduces the amount you owe on your next purchase.

For example, if you receive spoiled vegetables worth RM 50, the supplier might give you a credit note for RM 50. When you place your next order, this amount will be deducted from your bill. Credit notes help adjust accounts without needing immediate refunds. Keeping track of them ensures you don’t forget to use them and lose money.

6. Debit Note

A debit note is the opposite of a credit note. You send it to a supplier when you find errors in your order after receiving an invoice. This could be missing items, incorrect quantities, or poor-quality goods. The debit note asks the supplier to either adjust your next bill or refund the difference.

For example, if you ordered 20 kg of chicken for RM 200 but only received 18 kg, you can send a debit note for RM 20. This ensures you don’t overpay for items you didn’t receive. Without a debit note, suppliers may ignore your complaint, leaving you with a financial loss.

7. Quotation

A quotation is a price estimate from a supplier before you place an order. It lists the items you need along with their prices, helping you compare costs between different suppliers. Quotations are especially useful when dealing with fresh produce, as prices can change frequently.

When you request a quotation, suppliers usually lock in the prices for a short period, such as 7 or 14 days. This protects you from sudden price increases. Without a quotation, you might agree to a price verbally, only to find a higher amount on your invoice later. Getting written quotes helps you budget accurately and avoid unexpected costs.

8. Waybill / Shipping Note

A waybill or shipping note is a crucial document that travels with your delivered goods. It contains important transport details including the carrier company's name, driver information, delivery date, and a complete list of items being shipped. This document serves as both a receipt and a tracking tool for your incoming shipments.

For larger orders or valuable ingredients, the waybill becomes particularly important. If any shipment goes missing or gets delayed, this document helps trace the exact location of your goods through the logistics chain. While many delivery companies now offer digital tracking systems, maintaining a physical paper copy provides an extra layer of security. It serves as concrete evidence if any disputes arise about delivery times or missing items.

9. Material Requisition Form

The material requisition form is your internal control system for stock movement between storage areas and kitchen stations. Whenever your kitchen staff needs to withdraw ingredients from dry storage or walk-in coolers, they should complete this form detailing what items were taken, in what quantity, which staff member took them, and for which menu items they'll be used.

This simple documentation process creates accountability for your inventory. Research indicates restaurants lose significant amounts of stock, up to 10%, through unrecorded internal movements and minor theft. By implementing a requisition system, you'll immediately see reductions in missing stock and better understand your actual ingredient usage patterns for more accurate ordering.

10. Stock Transfer Note

For restaurants operating multiple locations, the stock transfer note is essential for managing inventory movements between outlets. This document records every detail when transferring ingredients, beverages, or supplies from one location to another, including exact quantities transferred, the staff members involved in the transfer, and verification of receipt at the destination location.

Without proper transfer documentation, inventory discrepancies inevitably occur. The National Restaurant Association's research shows that 5% of all inventory errors stem from poorly tracked inter-location transfers. These small losses add up quickly over time. A properly completed transfer note ensures all locations maintain accurate stock records and helps identify any transfer-related issues immediately.

11. Waste/Spoilage Report

The waste/spoilage report is your tool for tracking and analyzing food loss in your operation. Every time ingredients spoil, dishes get burned, or prepared food goes unused, staff should record these losses on the spoilage report. The document should include what was wasted, quantity, estimated value, reason for waste, and which staff member recorded it.

Food waste represents one of the biggest controllable costs in food service. According to FAO data, about one-third of all food produced globally goes to waste. In a restaurant setting, regular analysis of spoilage reports can reveal patterns - maybe you're consistently over-ordering certain perishables, or certain prep methods lead to more waste. Addressing these issues based on concrete data can save hundreds of RM monthly in reduced food costs.

12. Return to Vendor (RTV) Form

The Return to Vendor form is your official documentation when sending back defective, incorrect, or excess inventory to suppliers. This form should clearly state the reason for return (spoilage, wrong items, quality issues), include reference numbers from the original delivery, and be signed by both your staff and the delivery personnel accepting the return.

Without proper RTV documentation, suppliers may claim they never received returned goods, leaving you financially responsible for unusable inventory. The RTV form creates a paper trail that protects your rights to credits or replacements. It's especially important for high-value returns or when dealing with new suppliers where trust hasn't yet been established.

13. Daily Stock Reconciliation Sheet

The daily stock reconciliation sheet is your end-of-day checkpoint for inventory accuracy. This document involves physically counting high-value or critical items and comparing the actual counts with what your records say should be on hand based on purchases and sales. Significant variances should be investigated immediately.

Businesses that perform daily reconciliations experience up to 20% lower inventory shrinkage according to industry experts. The process helps quickly identify several issues - theft, spoilage not properly recorded, incorrect portioning, or even potential supplier shortages you didn't notice at delivery. While full inventory counts might happen weekly or monthly, daily spot checks on key items maintain tighter control.

14. Supplier Contract Agreement

Your supplier contract is the foundation of all business relationships with vendors. This legally binding document should clearly outline pricing structures, delivery schedules, quality standards, payment terms, and procedures for handling disputes or returns. It protects both parties by establishing expectations and remedies upfront.

Verbal agreements often lead to "he said, she said" conflicts when issues arise. A written contract eliminates ambiguity about your arrangements. Key elements to include are price fluctuation clauses, delivery time windows, quality specifications, and penalties for non-compliance. Having these terms documented ensures consistent supply quality and prevents unexpected cost increases.

15. Payment Voucher

The payment voucher is your proof of payment to suppliers. Each time you settle an invoice, create a voucher that includes the supplier's name, invoice number being paid, payment amount, payment date, and method of payment (cash, check, or transfer details). Some operations also attach a copy of the paid invoice to the voucher.

Organized payment vouchers prevent duplicate payments and help quickly resolve any supplier payment disputes. During tax season or audits, these documents provide clear evidence of your business expenses. They're particularly valuable when dealing with multiple locations or when different staff members handle ordering and payments, ensuring everyone stays informed about what has been paid.

How does the Food Market Hub help?

Food Market Hub gives you the platform that can help you manage all your invoices, delivery orders, and goods received notes. The best thing about this is that you can find all these documents in one place. If you want to pull up an invoice from the past, you can easily do that. A single dashboard can help you access them easily. If you want to reconcile any of these documents, you can do that very easily. 

FAQs

1.What is the difference between an invoice and a delivery order?
An invoice is a bill requesting payment, while a delivery order confirms that goods are being sent to you.

2.Why do I need a goods received note?
A GRN helps verify that delivered items match your order, preventing payment for missing or damaged goods.

3.When should I use a credit note?
Use a credit note when a supplier owes you money due to returns, discounts, or errors. It reduces your next bill instead of giving cash back.

4.How does a debit note help me?
A debit note helps you claim money back if you were overcharged or received fewer items than billed.

5.Do I need a contract with suppliers?
Yes, a contract ensures clear pricing, delivery, and quality terms, reducing future disputes.

Managing these documents well keeps your restaurant’s supply chain smooth. You avoid overpaying, reduce waste, and maintain good supplier relationships. Start using these papers correctly, you’ll see fewer mistakes and better control over your stock and spending.

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