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Goods Received Note | Full Form of GRN, Importance and Process

Last Updated : 18 Sep, 2023
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What is GRN?

GRN can be defined as a document prepared for the successful delivery of goods by sellers to buyers. In the world of business, keeping things running smoothly in your supply chain is crucial. GRN (Goods Received Note) is a document that plays a big role in making this happen. GRN is like an official “receipt” for goods that a customer gets from a supplier. Essentially, it serves as a formal acknowledgement of the receipt of goods within a business or organisation, validating the physical arrival of goods from a supplier or vendor. GRN stands for Goods Receipt Note. The full form of GRN is Goods Received Note.

Features of Goods Received Note (GRN)

1. Confirmation of Goods Receipt: A GRN is a written acknowledgement that the seller has successfully delivered the goods to the customer, verifying their condition in accordance with the purchase order.

2. Legally Binding Record: The GRN holds legal significance and can serve as evidence in case of disputes between the buyer and seller.

3. Essential Information: Typically, a GRN includes crucial details such as the buyer’s and seller’s names and addresses, purchase order number, delivery date and time, a description of received goods (including product name, quantity, and specifications), the condition of the goods, and signatures from both parties.

4. Inventory Management Tool: GRNs play a vital role in updating inventory records, ensuring that the correct quantity of goods is maintained in stock.

5. Accounts Reconciliation Tool: They are also instrumental in reconciling supplier invoices with the received goods, ensuring accurate payments.

What is to be Included in Goods Received Note (GRN)?

A GRN is made up of a few key pieces of information:

1. Supplier Information: This is just details about the company or person sending you the goods. This includes the name, address, and contact information of the supplier or vendor.

2. Buyer Information: This is about the concerned business, name, address, and contact information.

3. List of Goods: A comprehensive list of received items from the supplier. This includes a description of what the items are, quantity, how much they cost, and total values.

4. Date and Time: The GRN shows when you got the goods. This helps with keeping track of things.

5. Purchase Order: This is like a reference number that matches the order you placed with the supplier.

6. Invoice: If you got an invoice from the supplier, its invoice number should be included here.

7. Signatures: People responsible for receiving the goods put their signatures on the GRN. It is done to validate the receipt.

Process of Goods Received Note (GRN)

As Goods Received Note (GRN) is a document that shows the successful physical delivery by the seller to the buyer, the preparation of GRN involves some steps:

1. Receipt of Goods: When the supplier sends the goods to the buyer, the concerned examine them carefully to make sure the goods align with the purchase order and meet acceptable condition standards.

2. Creating the GRN: Now the filling out of the GRN form as per the delivery details takes place.

3. Verification Protocol: A close look at the GRN takes place to ascertain accuracy and make sure it matches the order and the invoice.

4. Attestation and Authorization: The people who checked the goods and the GRN sign it to say everything is correct.

5. Keeping Records: The finalized GRN is systematically archived for future reference and auditing purposes. It helps with accounting, auditing, and solving any problems with the supplier.

Importance of Goods Received Note (GRN)

GRNs might seem like just paperwork, but they are actually super important for a few reasons:

1. Accuracy: GRNs make sure you got exactly what you ordered, so you do not end up with the wrong stuff, contributing to the prevention of errors in inventory management.

2. Accountability: GRN serves as a means to establish accountability, both for the supplier and the acquiring entity, regarding the reception of goods.

3. Audit Trail: GRNs serve as invaluable components of the audit trail, simplifying financial and inventory audits.

4. Dispute Resolution: If there is ever a disagreement with the supplier about what was delivered, the GRN serves as tangible evidence of the goods received, offering a means for dispute resolution.

Difference between Goods Received Note and Goods Dispatch Note

While both the Goods Received Note (GRN) and the Goods Dispatch Note (GDN) are critical documents within the supply chain, they serve distinct purposes. GDN is kind of like the opposite of a GRN. While a GRN is about what you received, a GDN is about what a supplier is sending out. Essentially, it functions as a shipping document, outlining the contents, quantities, and destination of the goods to be transported. They’re both important but serve different purposes.


Goods Received Note (GRN)

Goods Dispatch Note (GDN)


Acknowledges receipt of goods.

Documents the dispatch of goods.


Lists received items, quantities, etc.

Lists items being sent, quantities, destination, etc.


From supplier to recipient.

From sender (supplier) to receiver (customer).


Used by the recipient to confirm receipt.

Used by the sender to confirm the dispatch of goods.


On verifying goods received.

On tracking goods sent.


Ensures accuracy in received items, and aids in dispute resolution.

Helps in order fulfillment, and provides a record of shipped goods.

To conclude, the Goods Received Note (GRN) is like your supply chain’s paperwork superhero. It makes sure you get what you ordered, keeps your records straight, and helps you deal with any problems along the way. Organisations that prioritise the implementation of GRNs get substantial benefits in the long run.

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