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Goods Receipt Notes (GRN)
What is the Goods Receipt Module?
The Goods Receipt module manages the physical receiving and inspection of goods delivered against Purchase Orders. When a shipment arrives at your warehouse, free zone, or project site, a Goods Receipt Note (GRN) is created to document what was received, in what quantity, and in what condition. Each GRN runs through a configurable inspection checklist tailored to the product category, ensuring quality standards are met before goods are accepted into inventory. The GRN is the critical middle document in the 3-way match (PO, GRN, Invoice) that protects your organization from paying for goods not received or not meeting specifications.
How It Connects
| Direction | Connected Module | Relationship |
|---|---|---|
| In <-- | Purchase Orders | GRNs are created against PO line items to record deliveries |
| In <-- | Shipments | Shipment arrival triggers GRN creation |
| Out --> | Inventory | Accepted goods are added to inventory stock levels |
| Out --> | Invoices | GRN quantities feed into 3-way matching for invoice approval |
| Out --> | Returns | Rejected items generate return requests back to the supplier |
| Both | Documents | Delivery notes, inspection reports, and photos are attached to the GRN |
Step-by-Step Guide
- Initiate a GRN -- navigate to Operations > Goods Receipt > New GRN. Alternatively, open a PO or Shipment and click "Receive Goods" to auto-populate line items.
- Select the PO -- choose the Purchase Order being received against. The system loads all unreceived line items with their expected quantities.
- Enter received quantities -- for each line item, enter the actual quantity received. The system highlights discrepancies against the PO quantity (over-delivery, short delivery).
- Run the inspection checklist -- each line item presents a checklist based on its product category. Mark each check as Pass or Fail. Common checks include: packaging integrity, label accuracy, visual inspection, quantity count, and specification conformance.
- Record accept/reject decisions -- for each line item:
- Accept: Quantity passes inspection and will be added to inventory.
- Partial Accept: Some units pass, others fail. Enter the accepted and rejected quantities separately.
- Reject: Entire quantity fails inspection. A reason must be provided.
- Attach evidence (optional but recommended) -- upload photos of damaged goods, delivery notes signed by the driver, or inspection reports.
- Submit the GRN -- click "Submit". Accepted quantities are immediately reflected in inventory. Rejected quantities trigger return request workflows.
- Review the 3-way match -- once both the GRN and supplier invoice exist, the system performs automatic matching: PO quantity vs. GRN quantity vs. Invoice quantity. Discrepancies are flagged for resolution.
GRN Status Lifecycle
Draft --> Inspection In Progress --> Submitted --> Completed
|
v
Partially Received (more deliveries expected)Partial Receipt Handling
| Scenario | PO Qty | GRN 1 | GRN 2 | Remaining | PO Status |
|---|---|---|---|---|---|
| Full delivery | 500 | 500 | -- | 0 | Completed |
| Partial delivery | 500 | 300 | 200 | 0 | Completed |
| Short delivery | 500 | 300 | -- | 200 | Partially Received |
| Over-delivery | 500 | 520 | -- | -20 (flagged) | Review Required |
Key Fields Explained
| Field | Description |
|---|---|
grn_number | Auto-generated reference (format: GRN-YYYY-NNNN). |
po_reference | The Purchase Order this GRN is recorded against. |
shipment_reference | Linked shipment record, if the GRN was triggered from a shipment arrival. |
received_date | The date goods were physically received at the location. |
receiving_location | Warehouse, free zone, or project site where goods were delivered. |
line_items | Each item with: expected qty, received qty, accepted qty, rejected qty, and inspection result. |
inspection_checklist | Category-specific checks applied to each line item (configurable in Settings). |
rejection_reason | Mandatory text field when any quantity is rejected (e.g., "damaged packaging", "wrong specification"). |
delivery_note_number | The supplier's delivery note reference for cross-referencing. |
received_by | The team member who physically inspected and accepted the goods. |
status | Current GRN state: Draft, Inspection In Progress, Submitted, Completed, Partially Received. |
Inspection Checklist Examples by Category
| Category | Checklist Items |
|---|---|
| Electrical | Voltage rating verified, CE/UL marking present, cable gauge matches spec, insulation intact |
| MEP / HVAC | BTU rating confirmed, refrigerant type matches, physical dimensions checked, mounting hardware included |
| IT Equipment | Serial numbers recorded, power-on test passed, firmware version noted, accessories complete |
| General / Construction | Material grade verified, quantity count matches, no visible damage, packaging intact |
Tips & Best Practices
TIP
Configure category-specific inspection checklists in Settings > Inspection Templates before receiving your first orders. Well-defined checklists ensure consistent quality control across your team and reduce subjective accept/reject decisions.
WARNING
Never accept goods without completing the inspection checklist. Skipping inspection breaks the quality audit trail and may result in defective materials entering your inventory or being installed on project sites without documentation.
TIP
Use the mobile GRN feature for warehouse receiving. Scan the PO barcode, enter quantities, snap photos of any damage, and submit -- all from a tablet or phone at the loading dock.
TIP
Enable automatic return request generation in settings. When a line item is rejected, the system immediately creates a return request and notifies the supplier, reducing the turnaround time for replacements.
WARNING
Over-deliveries (received quantity exceeding PO quantity) require explicit approval. The default tolerance is 5%, configurable in Settings > Receiving. Quantities exceeding the tolerance are flagged and cannot be accepted without a PO amendment.
FAQ
Q: Can I create a GRN without a linked PO? A: No. Every GRN must reference a Purchase Order. This ensures all received goods are traceable to an authorized purchase and supports the 3-way matching process.
Q: What happens when I reject items on a GRN? A: Rejected quantities are not added to inventory. The system creates a return request linked to the GRN and notifies the supplier. You can track the return status and any replacement shipments from the GRN detail page.
Q: Can multiple GRNs be created against the same PO? A: Yes. Partial receipts are fully supported. Each GRN records a portion of the PO, and the system tracks cumulative received quantities. The PO status remains "Partially Received" until all line items are fully delivered.
Q: How does the 3-way match work? A: The system compares three documents: the PO (what was ordered), the GRN (what was received), and the Invoice (what the supplier is billing). All three must agree on quantities and pricing within configurable tolerances before the invoice is approved for payment.
Q: Can I edit a submitted GRN? A: Submitted GRNs cannot be edited directly to maintain audit integrity. If a correction is needed, create an Adjustment GRN that references the original GRN and documents the discrepancy with a reason.