Enterprise Procurement Concepts, Explained » Procure-to-Pay (P2P) » Goods Receipt (GRN)

Goods Receipt (GRN), Explained

2026-06-01 · 7 min read

A goods receipt, often recorded as a goods received note (GRN), is the document that confirms what a supplier actually delivered, checked against the purchase order for correct quantity and condition. It provides the proof-of-receipt used in three-way matching and updates inventory, so a business only pays for goods it genuinely received.

What is a goods receipt?

A goods receipt is the record created when a delivery arrives, confirming the quantity and condition of what was actually received against the corresponding purchase order. When documented formally it is called a goods received note (GRN), listing the PO reference, items, quantities accepted and any shortages, damage or rejections.

The goods receipt is the point where the physical world meets the paperwork. It converts a pending order into a confirmed delivery, and it is the evidence finance uses to verify that goods a supplier is billing for were genuinely received.

Who creates a goods receipt?

Goods receipts are recorded by warehouse, stores or receiving staff — or, for services and site deliveries, by the person who takes delivery. Procurement and finance teams rely on that record downstream, since it is a required input to three-way matching and inventory updates.

Why goods receipts matter

Without a reliable goods receipt, an organisation has no independent confirmation that what was ordered actually arrived, leaving it exposed to paying for short, damaged or missing deliveries. The receipt is the control that ensures payment is tied to delivery, not just to an order.

Accurate receipting also keeps the rest of the operation honest: it updates stock levels in real time, triggers the accrual of a liability in the accounts, and surfaces supplier delivery problems — short shipments, late arrivals, quality issues — as data that can feed supplier performance reviews.

How it works

1. Receive and inspect the delivery

When goods arrive, receiving staff check them against the delivery documents and the purchase order, counting quantities and inspecting for damage or incorrect items.

2. Record the goods receipt

The quantities accepted are recorded against the PO as a goods received note, noting any shortages, over-deliveries, damage or rejected items so the record reflects exactly what was accepted.

3. Update stock and enable matching

The receipt updates inventory levels and becomes the third document in three-way matching, so the supplier's invoice can be verified against both the order and the confirmed delivery.

Benefits

Confirms goods were delivered before any invoice is paid.
Provides the proof-of-receipt required for three-way matching.
Updates inventory and triggers accurate liability accruals in real time.
Captures shortages, damage and late deliveries as supplier performance data.
Creates an auditable link between the purchase order and physical delivery.

Frequently Asked Questions

What is the difference between a goods receipt and a delivery note?

A delivery note is issued by the supplier to state what they say they have sent. A goods receipt (GRN) is created by the buyer to record what was actually received and accepted after checking. The two are compared, and the GRN — not the delivery note — is the buyer's authoritative record.

What happens if the goods received do not match the purchase order?

Any discrepancy — short delivery, over-delivery, damage or wrong items — is noted on the goods receipt. The receipt records only what was accepted, which then flows into three-way matching, so the invoice can be held or partially paid rather than paid in full for goods not received.

Is a goods receipt needed for services as well as goods?

Yes. For services, the equivalent is a service entry or confirmation that the work was completed to the agreed scope. It serves the same purpose as a goods receipt — confirming delivery before the corresponding invoice is approved for payment.

How Lapasar Mall goods receipt & tracking delivers this

Lapasar Mall records goods receipt against each order with real-time shipment tracking, supporting partial deliveries and returns so received quantities are always accurate.

Goods receipt capture per order and delivery
Real-time shipment tracking
Partial delivery across multiple delivery orders
Partial returns
Received-quantity reconciliation

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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.
Purchase Order — The official, legally binding document a buyer issues to a supplier confirming what is being bought, at what price, in what quantity and on what terms.
Three-Way Matching — The financial control that compares the purchase order, the goods receipt and the supplier invoice before an invoice is cleared for payment.
Invoice Matching — The accounts-payable process of verifying a supplier invoice against the purchase order and receipt records before it is approved for payment.