Documentation

Goods Received Notes (GRN) Guide

Record and track incoming goods from suppliers with quality checks and approval workflows.

Watch: Goods Receipt Process Guide (8 min)

What is a Goods Received Note (GRN)?

A Goods Received Note (GRN) is a document that confirms the physical receipt of goods from a supplier. It records what was actually received against what was ordered, enabling quality checks, variance tracking, and accurate inventory updates.

Goods Received Notes list showing various statuses
View all goods received notes with their current status
Why GRN is Important
  • Accuracy: Verify received quantities match purchase order
  • Quality: Record quality inspection results
  • Discrepancies: Document shortages, damages, or wrong items
  • Audit Trail: Complete record of all goods received
  • Accounts Payable: Only pay for goods actually received

GRN Workflow

Every GRN follows this approval workflow:

GRN workflow showing status progression
GRNs progress through these stages before updating inventory
  1. Create GRN
    Status: Draft
    Create a new GRN from a Purchase Order. Record actual quantities received and any notes.
  2. Record Received Items
    Status: Draft
    For each item, enter the quantity received, batch/lot numbers, and quality status.
  3. Submit for Approval
    Status: Submitted
    Once all items are recorded, submit the GRN for manager review.
  4. Approve or Reject
    Status: Approved or Rejected
    Manager reviews the GRN and approves or rejects based on discrepancies.
  5. Post to Inventory
    Status: Posted
    Approved GRNs are posted, updating stock quantities in the system.

GRN Types

Type Description Source
Purchase Receipt Receipt against a purchase order Purchase Order
Return Receipt Goods returned from customer Sales Return/RMA
Transfer Receipt Goods transferred from another warehouse Stock Transfer

Creating a GRN from Purchase Order

Animated demo of creating a GRN
Creating a goods received note from a purchase order
  1. Open Purchase Order
    Navigate to Inventory > Purchase Orders and open the approved PO.
  2. Click "Receive Goods"
    Start the goods receipt process for this PO.
  3. Select Receiving Warehouse
    Choose the warehouse where goods will be stored.
  4. Enter Delivery Details
    • Delivery Note Number: Supplier's delivery document reference
    • Received Date: Date goods were physically received
    • Carrier: Shipping company (if applicable)
  5. Record Received Quantities
    For each item on the PO:
    • Enter quantity actually received
    • Record batch/lot numbers (if applicable)
    • Note any damages or quality issues
  6. Add Notes
    Document any discrepancies, missing items, or special conditions.
  7. Save as Draft or Submit
    • Save Draft: Continue recording later
    • Submit: Send for approval

Handling Partial Receipts

When you receive only part of an order, the system tracks what's still pending:

Partial receipt showing ordered vs received quantities
Track partial shipments and outstanding balances
Item Ordered Previously Received This Receipt Outstanding
Product A 100 0 60 40
Product B 50 50 0 0 (Complete)
Product C 200 100 75 25
Multiple GRNs per PO

A single Purchase Order can have multiple GRNs. Each GRN records a separate delivery until the full order is received.

Over-Receipt Handling

Sometimes suppliers deliver more than ordered. The system can handle this based on your settings:

Setting Behavior When to Use
Block Over-Receipt Cannot receive more than ordered Strict inventory control
Allow with Warning Warns but allows receipt Normal operations with oversight
Allow Silently Allows without notification Flexible receiving (not recommended)
Over-Receipt Implications

Over-received quantities may affect your accounts payable. Ensure finance is aware of any over-receipts before paying supplier invoices.

Quality Inspection

Record quality status during goods receipt:

Quality Status Description Stock Impact
Accepted Goods passed quality inspection Added to available stock
QA Hold Pending quality review Added to quarantine (not available)
Rejected Failed quality inspection Not added to stock, marked for return
Damaged Goods damaged in transit Not added to stock, claim from carrier

GRN Status Reference

Status Badge Description Actions Available
Draft Draft GRN created, being filled Edit, Submit, Cancel
Submitted Submitted Awaiting approval Approve, Reject
Approved Approved Approved, ready to post Post
Rejected Rejected Returned for correction Edit, Resubmit
Posted Posted Stock updated View only
Cancelled Cancelled GRN cancelled View only

GRN Fields Reference

Field Required Description
GRN Number Auto System-generated unique identifier
Purchase Order Yes The PO this receipt is against
Supplier Auto Populated from Purchase Order
Warehouse Yes Where goods will be stored
Received Date Yes Date goods physically arrived
Delivery Note # No Supplier's delivery document reference
Carrier No Shipping company name
Notes No Additional information or discrepancies

Best Practices

Do's
  • Always verify physical counts against delivery documentation
  • Record batch/lot numbers immediately for traceability
  • Note any damages or discrepancies before signing delivery receipt
  • Take photos of damaged goods as evidence
  • Post GRNs promptly to keep inventory accurate
Don'ts
  • Don't post GRNs without physical verification
  • Don't accept goods without matching them to a PO
  • Don't delay recording receipts (affects stock accuracy)
  • Don't modify posted GRNs (create adjustments instead)

Troubleshooting

Cannot Create GRN

  • Verify the Purchase Order is in "Approved" status
  • Check that there are outstanding quantities to receive
  • Ensure you have permission to create goods receipts

Stock Not Updated After Posting

  • Verify the GRN status is "Posted" (not just "Approved")
  • Check that the warehouse is correct and active
  • Review for any system errors in the GRN details

Quantities Don't Match PO

  • This may be a partial receipt - remaining quantities will be outstanding
  • Check if over-receipt is blocked in settings
  • Verify you're looking at the correct GRN for the correct delivery

Next Steps

Purchase Orders

Learn how to create and manage purchase orders.

Stock Movements

See how GRN receipts appear in stock movement history.