Damaged Goods

Prompt inspection of items received, whether ordered by Purchase Order or Purchasing Card, is the responsibility of the end-user department. If possible, note all visible information on the delivery receipt before the driver leaves.

Purchase Order

When goods are ordered on a purchase order, the persons who received the goods must notify the supplier of damaged delivery as soon as possible. Document the damaged receipt with as much detail as possible. Include a photo if possible. Keep all packaging. Do not enter any receipt in HokieMart (this will hold payment).

Work with the supplier for credit or replacement of damaged goods. Document all conversations with the supplier by sending an email with the details discussed. Attach any documentation or emails to the purchase order in HokieMart.

Contact Procurement if you need assistance.

Purchasing Card

When goods are bought using a purchasing card, the return and credit arrangements are the responsibility of the cardholder. In most cases, disputes can be resolved between the cardholder and the supplier. If the cardholder and the supplier cannot resolve the issue, a dispute can be opened by calling Bank of America’s disputes department. If needed at any point in the process, the Purchase Card Administrators can assist with the investigation and assist in the resolution.

Procurement Purchase Order

When goods are ordered by procurement on behalf of a department on a purchase order, the persons receiving the damaged goods must notify the supplier immediately. Document the damaged receipt with as much detail as possible. Include a photo if possible. Keep all packaging. Do not enter any receipt in HokieMart (this will hold payment).

Work with the supplier for credit or replacement of damaged goods. Document all conversations with the supplier by sending an email with the details discussed. Attach any documentation or emails to the purchase order in HokieMart. Forward all information to the Procurement Buyer for the damaged goods. If issues develop with the supplier, the department should escalate the issue by notifying the Procurement Buyer.

Free on Board (FOB) Method of Passing Title and Types of Claims

Handling Product Damage and Claims

1. Methods of Passing Title and Control of Goods
   1. FOB Point of Origin Freight Collect – Buyer assumes risk of transportation and seller assumes title the moment the carrier signs the bill of lading; buyer bears and pays freight charges.
   2. FOB Point of Origin Freight Prepaid – Buyer assumes risk of transportation and seller assumes title the moment the carrier signs the bill of lading; seller pays and invoices buyer for freight charges.
   3. FOB Point of Origin Freight Prepaid and Added to Invoice – Buyer assumes risk of transportation and seller assumes title the moment the carrier signs the bill of lading; seller pays and invoices buyer for freight charges.
   4. FOB Destination Freight Collect – Seller retains title and control of goods and selects the carrier and is responsible for the risk of transportation; title passes to buyer upon delivery and ownership by the buyer; buyer pays and bears the freight charges.
   5. FOB Destination Freight Prepaid – Seller retains title and control of goods and selects the carrier and is responsible for the risk of transportation; title passes to buyer upon delivery and ownership by the buyer; seller pays and bears the freight charges.
   6. FOB Destination Freight Prepaid and Added to Invoice – Seller retains title and control of goods and selects the carrier and is responsible for the risk of transportation; title passes to buyer upon delivery and ownership by the buyer; seller pays the freight and charges back the buyer by adding the freight charges to his invoice.
   7. FOB Destination Freight Collect and Allowed – Seller retains title and control of goods and selects the carrier and is responsible for the risk of transportation; title passes to buyer upon delivery and ownership by the buyer; buyer pays the freight charges and deducts the amount from the seller’s invoice.
2. Types of Claims
   1. Known Loss – Carrier fails to deliver the shipment intact to consignee due to destruction, disappearance, or damage.
   2. Concealed Loss – Loss not visibly apparent at the time of delivery but discovered upon opening containers.
   3. Known Damage – Damage that is apparent and acknowledged by carrier at time of delivery.
   4. Concealed Damage – Not readily visible at time of delivery by carrier.

Note: National Motor Freight Class (NMFC) guidelines state concealed damages must be reported to carriers within five (5) days after delivery.

For more information, contact Procurement, 540-231-6221, or the HokieMart help desk.

Last updated: 1.29.26