Goods Received Note (GRN)
A Goods Received Note, or GRN, is an internal record confirming the goods a business received from a supplier on a particular date.
A GRN usually records the purchase-order reference, supplier, delivery date, item descriptions, quantities received, shortages, damage and the person who checked the delivery. It provides evidence of receipt for inventory and accounts payable.
The buyer creates the GRN from what was actually received. It is different from the supplier’s delivery docket, which shows what the supplier says it sent.
Where Goods Received Notes Appear
You may see a GRN in:
- warehouse, stockroom and receiving workflows
- purchase order records
- inventory updates and job-cost records
- supplier-bill approval queues
- shortage, damage and return claims
- three-way matching and audit checks
Some systems call the same record a goods receipt, receiving report, receipt note or product receipt. Whatever the label, it should reflect the count and condition observed by the buyer.
Purchase Order, GRN And Supplier Invoice
| Record | Question It Answers | Typical Owner |
|---|---|---|
| Purchase Order | What did we authorise and order? | Purchasing |
| Goods Received Note | What did we actually receive? | Receiving or operations |
| Supplier Invoice | What is the supplier asking us to pay? | Supplier, then accounts payable |
Comparing the three records helps the business avoid paying for quantities that were not ordered or received.
How A Goods Received Note Works In Practice
When a delivery arrives, the receiver checks it against the purchase order and records the actual quantity and condition. A partial delivery should create a partial receipt rather than pretending the order is complete. Any damage, substitution or shortage should be noted and passed to purchasing or accounts payable.
The GRN can then support the inventory update and bill review. HMRC’s procure-to-pay control guidance describes matching purchase-order, goods-receipt and invoice information as a control before payment.
Simple Example
A retailer orders 100 lamps, but only 60 arrive. The receiver creates a GRN for 60 and records that 40 remain outstanding.
If the supplier invoices all 100 immediately, the invoice does not match the receipt. Accounts payable can hold or query the unmatched quantity instead of paying as though the full order arrived. When the remaining 40 are delivered, a second receipt completes the evidence.
Why Goods Received Notes Matter
A GRN links the physical delivery to the accounting workflow. It helps keep inventory quantities accurate, documents damaged or missing goods and gives accounts payable independent evidence before releasing payment.
Separating receipt from ordering and invoice entry also reduces the risk that one person’s mistake or unauthorised action passes through unchecked. Southern Cross University’s procurement procedures provide an official example of confirming receipt before supplier invoices proceed through payment controls.
Regional Variations
GRN is common in Australia, the United Kingdom, Ireland, Singapore and other markets, but terminology and tax evidence differ. North American systems often use receiving report or item receipt. A GRN supports receipt and approval; it does not replace a valid tax invoice where one is required.
How Gimbla Can Help
A business can compare its receiving evidence with the Gimbla purchase order before creating or approving the supplier bill. Keeping purchase-order and bill records connected makes quantity, price and account differences easier to review. If the GRN is kept outside Gimbla, retain it with the purchasing evidence.
Related Terms
Helpful Gimbla Guides
In Short
A GRN records what the buyer actually received. Comparing it with the purchase order and supplier invoice helps protect inventory accuracy and prevents payment for missing, damaged or unauthorised goods.