Procedure for Returning a Purchase
Approval Date: 2006-05-23
Effective Date: 2006-05-23
Responsible Unit: Department of Financial and Administrative Services
1. The University has a four part shipping form, which should be completed for each shipment leaving campus. Forms can be obtained at the Department of Financial and Administrative Services.
2. Purpose of Shipping Forms
The form is designed to perform the following functions:
2.1 To provide a packing slip that will accompany the shipment and identify it to the consignee.
2.2 To provide the shipping information required for the preparation of the Bill of Lading, and the proper dispatch of the shipment.
2.3 To provide information that will permit the issuing of an official University debit note when goods or equipment are being returned to a supplier or contractor for credit.
2.4 To provide a permanent record of the shipment so that it may be traced, if necessary.
3.1 Section A of the form provides packing slip details, and serves to identify the shipment to the consignee.
3.2 The amount specified in the space "Approximate Value" will be used to place insurance against loss or damage with the transportation company.
3.3 Section B is to be completed whenever goods or equipment are being returned to a supplier for credit or exchange. The information supplied by this section enables the Department of Financial and Administrative Services to prepare a debit note. It is important that an accurate description with serial numbers be supplied for all items.
4. MUN Drivers
4.1 All drivers should be instructed that they are not to accept parcels for shipment or delivery off-campus without a properly completed shipping form attached. The alternative would be for the driver to maintain a log book of all pick up and deliveries.
4.2 The driver should acknowledge receipt of the parcel by signing for it in a department shipping log book.
5. Distribution of Shipping Form
The four copies of the shipping form have the following distribution:
- Original copy - forward to supplier
- 1st copy - forward to the Director of Financial and Administrative Services
- 2nd copy - packing slip, enclose with shipment
- 3rd copy - department file copy
6. Shipments to Foreign Countries
6.1 Shipments to foreign countries require the preparation of export papers, and compliance with regulations governing the importation of the goods or equipment into the countries to which they are consigned.
6.2 The Customs Division of the Department of Financial and Administrative Services will attend to the preparation of these papers from the information supplied on the shipping form. These papers are required in the following instances:
- When equipment is being sent to the foreign country for repair. If the proper papers do not accompany the shipment, the University will be required to pay duty and sales tax upon the full value of the equipment when it is returned rather than upon the cost of repairs only.
- When the goods or equipment are being sent to the foreign country for "no-charge" exchange. The University will be required to pay duty and sales tax on the exchanged goods or equipment unless proper papers are prepared for the outgoing shipment.
- When the goods or equipment are being returned to the foreign supplier for credit.
6.3 This instruction applies to shipments which are being sent by ParcelPost, as well as to shipments that are being sent by other forms of transportation.
7. Accounting Procedures for Outgoing Shipments
7.1 There are two accounting situations which can arise as a result of returning purchases to suppliers:
- The original shipment was paid for and the return shipment requires reimbursement for the original purchase.
- The original shipment was not paid for and the return shipment does not require reimbursement.
7.2 When the original shipment is not paid for, then section B of the shipping form should NOT be completed.
7.3 When the original shipment is paid for, then section B of the shipping form should be completed in order to permit the Department of Financial and Administrative Services to request reimbursement from the supplier.