Goods Received Note (GRN)

• At the time of receiving the goods ordered through a Purchase Order, the buyer issues a confirmation through Goods Received Note.

• A GRN can have some or all of the following and more information:

1) Date, Serial Number

2) PO Number, Purchase Invoice Number

3) Name and address of the supplier

4) Product description, ordered quantity, received quantity

5) Delivery method and delivery date

6) Remarks, if any

• A GRN is a confirmation of the quality and quantity of goods received.

• If there is any damaged or short material received, the same is notified on the GRN, based on which the purchase department can give feedback to the supplier for corrective action.

• In many companies, a GRN is compulsory before making payment for the purchases. I.e. The receiving department must issue a GRN and attach the same to the purchase bill and give it to the accounts department, to confirm that the goods mentioned in the bill are received and the payment can be made.

• Sometimes, a copy of GRN is sent to the supplier as well, to enable them to initiate payment collection from our company.

 

---

WHAT YOU CAN READ NEXT