Goods received note

Goods received note
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Methods and techniques

Goods received note (GRN) - is the document filled by a store when ordered goods are arriving. Goods are going through specific receiving procedure conducted by intended department in the store. Received goods are compared with the purchase order and a condition of products is checked. If needed, they are inspected in a separate inspection department as well. After all these steps are made, goods received note is prepared. Later on the GRN is used in many other departments such as: a production planning department, a controlling department, a purchase department, an inspection department, an accounts department and a costing department. The accounts department is comparing the prices from the GRN document with the purchase order. If the verification is confirmed, the invoice from the supplier is paid. In case of rejection of goods, the purchase department is asking the supplier to replace the goods[1].

The goods received note elements[edit]

Exact elements of the goods received note are depending on a specific procedure which the company is following. The goods received note might consists of: a good received note number, a good received note date, a purchase order date, a purchase order number, a material code, a description, specifications, a received quantity, an inspected quantity, an accepted quantity, a rejected quantity, a reason of rejection, an unit price, a value of materials, a supplier name, a supplier code, an inspection note number, a store number, a name of person who prepared the document, a signature of perosn who filled the document[2].

Example of the process including the goods received note[edit]

On the base of steps in ordering process described by Alan V. Hore, below there is presented some exemplary sequence of actions including GRN[3]:

  1. Placing order,
  2. Receiving order,
  3. Filling out order form,
  4. Confirming order,
  5. Receiving order by order office,
  6. Giving order to dispatcher,
  7. Loading of materials,
  8. Preparing delivery docket and giving it to driver,
  9. Checking load on dispatch,
  10. Checking goods on arrival,
  11. Bringing delivery and GRN,
  12. Filling out GRN,
  13. Sending delivery docket and GRN to accounts department,
  14. Forwarding delivery note to supplier,
  15. Including amount in supplier's account,
  16. Issuing invoice,
  17. Checking invoice versus GRN,
  18. Authorisation of payment,
  19. Collecting of payment,
  20. Bringing payment to supplier,
  21. Locating payment in bank.

Author: Dominika Zaich

Footnotes[edit]

  1. Dutta M. (2004), p.2
  2. Dutta M. (2004), p.10
  3. Gunnigan L., Orr T.L.L. and Hore A.V., (2004), p.7

References[edit]