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Goods Receive Note (GRN)

A Goods Receive Note (GRN) is an official document that confirms the receipt of goods from a supplier or vendor. It records the quantity and condition of items delivered against a Purchase Order or Purchase Indent. The GRN acts as proof that the goods have been physically received and inspected, serving as a critical control point in the procurement and inventory management process.

Purpose​

  • To verify and document the physical receipt of goods.
  • To check the quantity and quality of items received against ordered quantities.
  • To provide evidence for matching invoices and initiating payment processes.
  • To trigger inventory updates and stock availability in the system.
  • To support audit and compliance requirements.

Key Features​

  • Item and Quantity Verification: Records detailed information about each product received, including batch or serial numbers where applicable.
  • Condition Inspection: Documents the quality and condition of received goods, noting any damages, shortages, or discrepancies.
  • Reference Linking: Associates the GRN with related Purchase Orders, Purchase Indents, or delivery challans.
  • Warehouse Allocation: Specifies the warehouse or storage location where goods are received.
  • Date and Time Stamping: Logs the date and time of receipt for traceability.
  • Approval Workflow: Supports multi-level approvals to validate receipt and condition before inventory update.
  • Audit Trail: Maintains a history of all GRNs with user actions and modifications.

Workflow​

  1. Upon delivery, the receiving department inspects and counts the goods.
  2. Create a new GRN entry in the system, capturing all relevant item and delivery details.
  3. Record any discrepancies, damages, or shortages noted during inspection.
  4. Link the GRN to the corresponding Purchase Order or Purchase Indent for validation.
  5. Submit the GRN for approval as per organizational workflow.
  6. Once approved, update the inventory stock levels accordingly.
  7. GRN data is then used to match invoices and initiate payment processing.

Access Path​

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The Goods Receive Note is a vital document ensuring your business only pays for goods that are correctly delivered and inspected, maintaining integrity across procurement and inventory operations.