A goods received note (often abbreviated to the acronym GRN) is a document that is used to confirm that goods have been received by a company or organization. It typically includes details such as the date of receipt, the name of the supplier, a description of the goods received, and the quantity received. The GRN is often used in conjunction with a purchase order (PO) to ensure that the goods received match the goods that were ordered. Once the GRN is signed and approved, the invoice for the goods can be processed for payment. The GRN also helps in inventory management and tracking of goods in a warehouse. It also helps to identify any discrepancies between the order and the goods received, and to resolve any issues that may arise.
As a user of eTail Support – when a supplier delivers goods to your warehouse, the goods are booked into stock by a warehouse operative using the functions at purchasing & suppliers > Book In Stock . The user selects the PO that the goods have been delivered against and then confirms the number of each type of item that has been delivered. If the items have supplier serial numbers, they can then be added to the stock records at this time by scanning bar codes or manually entering them.
For each type of item that has been delivered, the system will generate a Goods Received Note Record in eTail Support.
The GRN is the companies record that goods have been Received from the supplier, when they were Received, how many were Received and which supplier they came from. When the Supplier sends the customer an Invoice for payment the quantity on the Invoice can be checked against the GRN as part of the ‘Three Way Matching’ process to confirm that the invoice is correct and can be paid (The price on the Invoice is also checked against the PO – hence ‘three way matching’).
ACCOUNTS TIP –
The creation of a GRN has an effect on the company’s General Ledger, because when the company accepts the goods hey also take on a liability to pay for them in due course. The creation of a GRN generates a posting to the ‘Goods Received, Not Invoiced’ account in the General Ledger and another to the Stock Account, recording that the company has benefited by the transaction as it has gained ownership of some stock, but also taken on a liability to pay the supplier for that stock.
