Purchase & store glossary
Gate Pass: Meaning, Types & Returnable Gate Pass Format
Gate pass, in short
A gate pass is a document that authorises material to leave the factory gate. A returnable gate pass (RGP) is used when material is sent out and expected back, such as a motor sent for rewinding. A non-returnable gate pass (NRGP) covers material leaving for good, such as scrap or rejected goods.
Also called: RGP, NRGP, Returnable gate pass, Non-returnable gate pass, Material gate pass
The security guard at your gate should never let material out without paper. That paper is the gate pass.
Two types
Returnable gate pass (RGP): the material is expected back. Common examples:
- A motor sent for rewinding
- A pump or gearbox sent for repair
- Moulds or dies sent to a job worker
- Samples sent for testing
Non-returnable gate pass (NRGP): the material is leaving for good. Examples:
- Scrap sold to a dealer
- Rejected material returned to the vendor
- Material transferred to another company
What a gate pass format includes
- Gate pass number, date and type (RGP or NRGP)
- Party name and address
- Item, quantity and unit
- Purpose: repair, job work, return, sale
- Expected return date (RGP only)
- Vehicle number and driver
- Issued by and authorised by
- Security check-out time
Why returnable gate passes go wrong
The motor goes out for rewinding with a paper RGP. Three months later, nobody remembers which vendor has it, or whether it came back. Following up open returnable passes takes little effort and recovers equipment the plant would otherwise buy again.
Good practice
- Number gate passes serially so a missing one is noticed
- Require an authorised signature before security lets anything out
- Review open returnable passes every week, oldest first
- When material comes back, record it against the original gate pass, not as a fresh receipt
Example
A plant has 14 open returnable gate passes older than 60 days: two motors, a gearbox, four pumps and seven sets of rolls. Following them up recovers equipment worth several lakh rupees that would otherwise have been bought again. (Illustrative example.)
How IndustryPrime handles it
Returnable and non-returnable gate passes are built in. Each one is linked to the item and the party. Open returnable passes stay visible until the material is received back, so no returnable item is forgotten. See gate pass management.