Buying and selling
What is a goods received note (GRN)? Meaning and format
Definition
Goods received note: A goods received note (GRN) records what actually arrived from a supplier, checked against the purchase order, before stock is added and the bill is paid.
Also called: GRN, Goods receipt note, Material receipt note, Inward note, GRN meaning
What a GRN is for
A goods received note is filled in at the godown or shop when a delivery comes in. It records what arrived, how much, in what condition and who checked it. It is the middle step between the purchase order, which says what you asked for, and the supplier's bill, which says what you are asked to pay.
Without a GRN, the person paying the bill has to trust that everything arrived. With one, short or damaged goods are noted on the day, while the driver is still there, and you can ask the supplier for a replacement or a credit note before you pay.
What to record on a goods received note
A useful GRN records:
- GRN date and the PO number the goods are received against.
- The supplier's name and their invoice or challan number.
- Each item with the quantity ordered, quantity received and quantity still pending.
- Batch or lot number and expiry date, for food, cosmetics, medicines and other dated goods.
- Damaged, short or rejected quantities, with a note.
- Who received the goods, who checked them, and the storekeeper's signature.
Good practice and common mistakes
Count before you sign the transporter's copy, and record what actually arrived, not what the bill or challan says. Make one GRN for each delivery when an order comes in parts, so the pending quantity is always right. Enter lot numbers and expiry dates while the cartons are in front of you; adding them later from memory is how expired stock ends up on the shelf.
If the supplier's bill reaches you before the goods, keep it aside until the GRN is done, and pay only for what the GRN shows. A dated GRN also settles later arguments about when a delivery arrived and which batch it brought.
Worked example
A part delivery at a cosmetics brand
A Jaipur cosmetics brand ordered 1,200 jars of cream base on PO-00058. The truck brings 1,000 jars in two lots: 600 from lot FC2409 expiring March 2028 and 400 from lot FC2410 expiring May 2028. Twelve jars are cracked. The GRN shows 1,200 ordered, 988 good jars received, 12 rejected and 200 still pending. The supplier's bill for 1,000 jars is held until a credit note for the 12 cracked jars arrives.
In managemate
In managemate, you receive goods against the purchase order by typing quantities or scanning each item, with a lot number and expiry date where the product needs one, and stock goes up at the receiving location straight away. Anything short stays open on the order. The Goods received note PDF shows the PO it was received against, the bill number once recorded, and each item with its HSN code, ordered, received and pending quantities and a Checked box, with lines for Prepared by, Checked by and Store keeper. You can print QR labels for the new lots at the same time. Record only the good quantity, or send rejected goods back with Return to supplier, which records a numbered credit note against the bill.
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