Warehouse Receipt - Explained
What is a Warehouse Receipt?
Written by Jason Gordon
Updated at June 26th, 2021
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Table of Contents
What is a Warehouse Receipt?How is a Warehouse Receipt Used?Academic Research on Warehouse ReceiptWhat is a Warehouse Receipt?
A warehouse receipt is issued to serve as a proof that certain goods or commodities are stored in an approved facility at a particular time. Warehouse receipts list the types, number, and other identifying characteristics of the stored goods.
A warehouse receipt is a document used in futures markets as a proof that certain commodities are kept by the owners within a warehouse. The receipt contains the name of the owner of a commodity, the quantity stored in a warehouse, and the condition of the commodity when it was stored.
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How is a Warehouse Receipt Used?
Without the receipts, no delivery of stored commodities can be made.
Warehouse receipts are used to settle futures contracts. A vault receipt is an example of warehouse receipt but it is used for metals. Vault receipts show ownership of precious metals stored in a warehouse, bank and other approved facilities.
Warehouse receipts are used for commodities stored which will be delivered or used later on. They are called commodities for physical delivery. Commodities for physical delivery are used to produce and manufacture many goods.
Tracking of physical inventory is a crucial process for future contracts. Commodity inventory must be registered with designated authorities and must be inspected and authenticated before they become useful in the future markets.
Academic Research on Warehouse Receipt
- The role of warehouse receipt systems in enhanced commodity marketing and rural livelihoods in Africa, Coulter, J., & Onumah, G. (2002). Food policy, 27(4), 319-337.
- A finance company's approach to warehouse receipt loans, Eisenstadt, M. (1966). New York Certified Public Accountant (pre-1986), 36(000009), 661.
- Improving access to rural finance through regulated warehouse receipt systems in Africa, Onumah, G. (2003, June). International Trade Center, Ronald Reagan Building, Washington, DC (pp. 2-4).
- Implementing warehouse receipt systems in Africa potential and challenges, Onumah, G. (2010, September). In fourth African agricultural markets program policy symposium, organized by the Alliance for Commodity Trade in Eastern and Southern Africa (ACTESA) of the Common Market for Eastern and Southern Africa (COMESA).
- Trust Receipt vs. Warehouse Receipt-Which Prevails When They Cover the Same Goods, Funk, C. W. (1963). Bus. Law., 19, 627.
- The use of warehouse receipt finance in agriculture in ECA countries, Hllinger, F., Rutten, L., & Kiriakov, K. (2009, June). In Technical background paper for the World Grain Forum (pp. 6-7).
- Review of warehouse receipt as an instrument for financing in India, Mahanta, D. (2012). International journal of scientific & technology research, 1(9), 42-45.
- The Protection of a Holder of a Warehouse Receipt, Hanna, J. (1930). Minn. L. Rev., 15, 292.
- Warehouse Receipt Finance for FarmersA Glimpse, Mor, M. N., & Fernandes, K. (2009). A Publication By Mcx And Price Waterhouse Coopers/Commodity nsight Yearbook.
- The Research of Risk Management Basis of Warehouse Receipt Pledging [J], Xiaoyan, Y. J. C. Y. R. (2008). China Market, 2, 005.
- The Warehouse Receipt-Credit Security and Financing Device, Everberg, C. B. (1949). Com. LJ, 54, 51.