The Procurement Glossary » Goods Receipt (GRN)
Goods Receipt (GRN)
Procure-to-Pay
Also known as: GRN, Goods Received Note
Definition
The record confirming that ordered goods have arrived, capturing quantity and condition against the purchase order.
Explanation
The goods-receipt note (GRN) is the second leg of three-way matching. It proves delivery happened as ordered and triggers stock updates and invoice matching. Discrepancies (short, over or damaged deliveries) are flagged here for resolution.
Example
Receiving logs a GRN for 22 of the 24 chairs ordered; the two-chair shortfall holds the invoice for review.
Related terms
- Three-Way Matching — An invoice-control check comparing the purchase order, the goods-receipt record and the supplier invoice before payment.
- Purchase Order (PO) — A buyer's official document authorising a purchase from a supplier, stating items, quantities, prices and terms; once accepted it forms a contract.
- Goods Received Not Invoiced (GRNI) — An accounting position where goods have been received but the supplier's invoice has not yet arrived or been processed.
- Quality Inspection — The act of examining delivered goods against defined criteria, often at goods receipt.
Related concepts
- Procure-to-Pay (P2P) — The end-to-end operational buying cycle — from requisition and approval to purchase order, receipt, invoice matching and payment.
Frequently Asked Questions
What is Goods Receipt (GRN)?
The record confirming that ordered goods have arrived, capturing quantity and condition against the purchase order. The goods-receipt note (GRN) is the second leg of three-way matching. It proves delivery happened as ordered and triggers stock updates and invoice matching. Discrepancies (short, over or damaged deliveries) are flagged here for resolution.
Can you give an example of Goods Receipt (GRN)?
Receiving logs a GRN for 22 of the 24 chairs ordered; the two-chair shortfall holds the invoice for review.
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