An exception report, or rider to the inventory, is an itemized listing of any new damage when the possession of the shipment changes from one mover to another. Typically, an exception report is compiled when a shipment is placed into storage or SIT. The delivery driver’s liability is ending for the shipment and is being transferred to the destination warehouse. It is the obligation of the accepting warehouse to verify the quantity and condition of all of the items it receives. For example, a shipment from California arrives at the Arpin of RI warehouse in West Warwick for short term storage. The loading driver has prepared an inventory of everything he loaded on his truck which documents any pre-existing damage. The Arpin of RI facility will check of the inventory as if they were the customer to verify that everything loaded has been unladed and documents any shortage or transit damage.