Lorry receipt

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M Prabhu (Querist)
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10 November 2013 I am in Purchase.

Generally All suppliers they send original commercial documents for payment after despatch to me except Lorry Receipt.

Suppliers Says Consignee Lorry Receipt should go along with Material to the project site. The material receipt acknowledgement to be done on Consignee Lorry Receipt only.

Transporter says. It is not necessary Consignee Lorry receipt along with Material.

I would like to have the clear notifications and guidelines for the same.

M Prabhu

M Prabhu (Querist)
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16 February 2014 Waiting for the clarity

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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03 August 2024 The handling of lorry receipts and other commercial documents in the context of supply and transportation involves several considerations, particularly in relation to the consignee’s role and the requirements for material receipt and payment processing. Here’s a detailed explanation to clarify the situation:

### 1. **Role of Lorry Receipt**

A lorry receipt (LR) or transport receipt is a document issued by the transporter acknowledging the receipt of goods for delivery. It is used to track and manage the transportation of goods from the seller to the buyer.

### 2. **Handling of Lorry Receipt**

#### **a. Supplier’s Perspective**

- **Commercial Documents**: Suppliers generally send original commercial documents such as invoices, delivery challans, and other related documents to the buyer for payment processing.
- **Consignee Lorry Receipt**: The supplier might expect the consignee lorry receipt to be sent to the project site along with the material because it serves as proof of delivery and receipt of the goods at the destination. This ensures that the material has reached the consignee’s premises and is accepted by them.

#### **b. Transporter’s Perspective**

- **Requirement for LR**: Transporters often claim that it is not necessary for the consignee lorry receipt to accompany the material during transit. This may be due to the fact that the transporter’s responsibility is to deliver the goods and provide a receipt acknowledging the delivery to the consignee.

### 3. **Guidelines and Notifications**

#### **a. General Practice**

- **Consignment Tracking**: The general practice in many industries is that the lorry receipt (or consignment note) should be handed over to the consignee at the time of delivery. The consignee then acknowledges receipt of the goods on the lorry receipt, which is used for record-keeping and confirming delivery.

#### **b. Payment Processing**

- **Proof of Delivery**: For payment processing, suppliers typically require proof of delivery, which can be in the form of an acknowledgment on the lorry receipt. This helps in ensuring that payment is made only after confirming the delivery of goods.
- **Documentation Handling**: It is common practice to receive the original lorry receipt along with the goods or shortly thereafter. This ensures that all necessary documentation is available for proper record-keeping and compliance with payment terms.

### 4. **Legal and Regulatory Considerations**

- **Contractual Obligations**: The specific requirements regarding the handling of lorry receipts and other documents might be outlined in the contractual agreement between the buyer and the supplier. It’s important to review the terms and conditions agreed upon to ensure compliance.
- **Regulatory Compliance**: In some jurisdictions, there may be regulatory guidelines or industry practices governing the handling of transportation and delivery documents. Refer to local transportation regulations or industry standards for detailed requirements.

### 5. **Recommendations**

- **Clarify with Supplier**: If there is a discrepancy between the supplier's and transporter's practices, clarify the expectations with both parties. Ensure that the lorry receipt requirements are clearly defined in your purchase agreements.
- **Document Receipt Process**: Ensure that your company has a clear process for receiving and acknowledging lorry receipts and other documents to avoid discrepancies and ensure proper payment processing.

### Summary

- **Supplier’s Expectation**: Suppliers often expect the lorry receipt to be sent with the material for acknowledgment of delivery.
- **Transporter’s Perspective**: Transporters may not always provide the consignee lorry receipt with the material but this can vary.
- **Check Contracts and Regulations**: Review your contracts and local regulations to ensure proper handling of lorry receipts and compliance with payment procedures.

For specific legal or regulatory guidelines, consulting a legal advisor or referring to local industry standards may provide additional clarity.

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