The supplier sent a substitute product: correct the receipt before costing sales

Compare the supplier's packing information with the actual product specification, variant and pack quantity. A similar description or a familiar barcode is insufficient when the substitute differs in size, composition or saleable unit. Hold the affected goods while the authorized buyer and operating team decide whether the substitution is acceptable under the purchase agreement.

Microsoft's receiving guidance emphasizes a receipt identifier that connects supplier documentation with actual quantities. Shopify's SKU guidance supports distinct product-variant identification. Preserve both facts: what the supplier intended to send and what the warehouse actually received. Do not force the receipt onto the ordered SKU merely to clear an exception.

Confirm the accepted price, quantity and any allowance with the supplier. Determine whether existing customer orders can use the substitute under their terms or require customer approval. Product suitability and any disclosure obligations belong with the responsible operating or legal owner. Finance needs the approved outcome before assigning a purchase cost or treating the goods as available.

If the substitute is rejected, record the return or supplier collection route and keep it out of saleable stock. If accepted, update the purchase documentation through the approved change process. Retain the original request and the substitution approval so future invoice matching does not rely on a verbal explanation from an employee who may no longer handle the supplier.

Check whether the substitute uses the same pack size and unit of measure. A case price comparison can be misleading when the number of sellable units changes. Record the new product identifier and conversion in the inventory master, with an effective date and supported cost. Do not overwrite the old product's historical cost if it represents different goods.

Suppose a hypothetical order called for 20 cases of 12 units at $48 per case, but the accepted substitute arrives in 20 cases of ten units at $45 per case. The receipt is 200 units costing $900, or $4.50 each. The ordered goods would have been 240 units at $4 each. The lower case price therefore accompanies fewer units and a higher unit cost.

Carry any approved supplier credit separately until it is issued and applied. A promised price adjustment should remain identifiable instead of being hidden inside an unsupported manual unit cost.

Update warehouse labels, channel mappings and open customer allocations through the supported process. Confirm that selling the substitute reduces the correct item and uses the approved cost. Where management wants a combined product-family report, preserve the variant distinction underneath so margin changes can still be explained.

At the close, reconcile the supplier invoice, accepted receipt and remaining ordered quantity. The original product may still be due unless the buyer explicitly canceled that commitment. Keep any unresolved shortage, return or customer accommodation attached to the substitution case. A completed receipt should explain both the goods now owned and the supplier obligation that remains.