How to Create an Accurate Goods Received Note GRN

Over time, such delays can strain Statement of Comprehensive Income vendor relationships and even impact supply terms. For example, a retail chain may order 1,000 pairs of shoes, but the supplier delivers 950 pairs and bills for the full amount. Without a properly maintained GRN, the finance team might process payment assuming the full delivery was made.

• With features designed to streamline operations, improve accuracy, and integrate with existing digital systems, Manifestly can be a valuable asset in enhancing your GRN management.
• Think of it as the first checkpoint in the journey of your stock, the document that verifies whether what was ordered is exactly what was delivered.
• Unfortunately, it’s difficult to detect fraud or prevent mistakes in data entries, which can lead to regulatory violations and legal fines.
• Large companies may issue a goods received note when moving goods from one warehouse to another.

Record Keeping and Audits

HighRadius stands out as an IDC MarketScape Leader for AR Automation Software, serving both large and midsized businesses. The IDC report highlights HighRadius’ integration of machine learning across its AR products, enhancing payment matching, credit management, and cash forecasting capabilities. Centralized GRN visibilityGet real-time insights into delivery activity—what was received, when, and in what quantity—enabling accurate invoice validation and better collaboration across teams. One of the most frequent problems is receiving incorrect or incomplete GRNs.

Managed Services

Another massive plus is enhanced financial control and fraud prevention. The GRN is a critical component goods received note of the three-way matching process (PO, GRN, Invoice). This systematic check ensures that you are only paying for goods that have been ordered and received. It acts as a powerful deterrent against duplicate payments, incorrect invoices, or even outright fraudulent claims from suppliers. By requiring a GRN before an invoice can be approved, you create a robust internal control that safeguards your company’s finances. It brings a level of transparency and accountability to the procurement process that is invaluable.

Hierarchy and Controls

The goods are inspected once the delivery is made to ensure they are correct, i.e., they match the quantity and quality ordered. The GRN helps the receiving department determine whether the products match the details in the PO (purchase order), such as components. The GRN is an official record and document that can be used in the future for audit purposes and for inventory management of the product.

Begin by ensuring that your team is trained to follow a standardized procedure for receiving goods. This includes checking delivery documents, inspecting goods, and recording findings ledger account in the GRN. Consistency in these steps minimizes errors and enhances the reliability of your inventory records. Overall, the use of Goods Received Notes can be beneficial, as they provide a record of what was ordered and received to ensure accuracy and compliance. However, they can also have a downside, in that they can be time-consuming and lead to slower GRN processing times and difficulty referencing against original purchase orders. This can lead to lost paperwork and can affect the accuracy of matching goods received with multiple department PO line items, as well as impact supplier management and the cost of orders.