Goods Received Note Processing

Master the critical process of receiving goods and creating accurate Goods Received Notes (GRNs) that update inventory and enable invoice processing.

What is a GRN?

A Goods Received Note (GRN) is a document that records:

• What goods were physically received
• When they were received
• What quantity was received
• The condition of goods
• Who received them
• Where they’re stored

Before You Start

Prerequisites

• PO exists in system (for standard receipts)
• Warehouse space available
• Receiving area clear
• Scanning equipment ready (if serialized items)
• Your user account has GRN creation permission

What You Need

• Purchase Order copy (print or on screen)
• Supplier’s Delivery Order (DO)
• Packing list
• Physical goods being delivered
• Mobile device or computer for data entry

Estimated Time

• Simple receipt (1-5 items, no serials): 15-30 minutes
• Complex receipt (many items, serialized): 1-2 hours

Pre-Delivery Preparation

Day Before Delivery

Check Expected Deliveries:

Navigation: [Purchasing > Expected Deliveries] or [Reports > Expected GRNs]

Review:

• POs with delivery due tomorrow/this week
• Quantities expected
• Special requirements
• Storage space needed

Prepare:

• Print PO copies for reference
• Clear receiving area
• Allocate storage locations
• Brief receiving staff
• Prepare tools (barcode scanner, camera, tape measure)
• Coordinate forklift availability (if needed)

Morning of Delivery

30 minutes before delivery window:

• Re-check expected deliveries
• Have PO copies ready
• Receiving area organized
• Staff assigned and briefed
• Equipment tested and ready

Physical Receipt Process

Step 1: Delivery Vehicle Arrives

Immediate actions:

Greet Driver:

• Welcome professionally
• Direct to receiving bay/area
• Brief on process and expected time

Collect Documents:

• Delivery Order (DO) from driver
• Packing list
• Any special documents (certificates, warranties)

Verify Documents:

• Supplier name matches expected delivery
• DO number present
• PO number referenced
• Quantity summary shown
• Date is current

Quick Check Against PO:

• Is this the right delivery for your PO?
• Quantity range matches expectation?
• Delivery address is correct (your location)?

Step 2: Unload Goods

Unloading process:

Safe Unloading:

1. Use appropriate equipment (forklift, pallet jack, dolly)
2. Follow safety procedures
3. Place in designated receiving area
4. Keep packages intact for counting
5. Group by item type if mixed delivery

Initial Inspection During Unload:

• Visible damage: Note any damaged packages
• Wet/crushed packages: Separate immediately
• Leaking containers: Handle carefully, isolate
• Temperature-sensitive: Move to appropriate area quickly

Package Count:

• Count total packages/cartons
• Match to DO package count
• Note discrepancies
• Get driver to acknowledge any shortage

Photos:

• Take photos of:
  • Overall delivery (all packages)
  • Any damage (before opening)
  • Package labels and markings
  • Vehicle license plate

Step 3: Physical Counting

Open packages (per your policy):

• Sample: Open 10-20% of packages to verify contents
• Full: Open all packages and count all items
• Risk-based: Open based on item value and supplier trust

Count Methodology:

Small Items (screws, small parts):

• Count by weight (if uniform weight)
• Count sample, then by package
• Use counting scales if available

Medium Items (most products):

• Physical count one by one
• Group in tens/twenties for easier tracking
• Two-person count for high-value items

Large Items (machinery, equipment):

• Visual count
• Check serial numbers
• Verify model numbers

Documentation:

• Note count on receiving slip
• Initial if count different from DO
• Get second person to verify large discrepancies

Step 4: Quality Inspection

Visual Inspection:

• Correct item (matches PO description)
• Correct model/part number
• No physical damage
• Packaging intact
• No rust, corrosion, or deterioration
• Labels and markings present

Specific Checks:

For Food/Chemicals:

• Expiry date acceptable
• Batch number recorded
• Safety data sheet provided
• Storage temperature appropriate

For Electronics:

• Model number matches
• Serial numbers present
• Power specifications correct
• Accessories included

For Machinery:

• Model matches order
• Serial plate present and readable
• Accessories/parts included
• Manuals and certificates provided

Functional Testing (if policy requires):

• Power on test
• Basic function test
• Calibration check (for instruments)
• Performance within spec

Failed Inspection: If items don’t pass quality checks:

1. Set aside failed items
2. Photo document issues
3. Note on DO
4. Get driver acknowledgment
5. Decide: Reject, or accept with claims

Creating GRN in System

Step 5: Navigate and Start GRN

Navigation: [Purchasing > Goods Receipt > New GRN]

Or: Quick create (+ icon) > “Goods Receipt Note”

Select GRN Type:

• With PO: Standard receipt against PO (most common)
• Without PO: Direct GRN for walk-in purchases
• Consignment Receipt: Consignment stock receipt
• Return to Supplier: If immediately rejecting

For Standard GRN (with PO):

1. Click New GRN or New Receipt
2. Select Against Purchase Order
3. Search for PO number
4. System loads PO details

Step 6: Enter GRN Header

Document Information:

• GRN Number: Usually auto-generated (leave blank)
• GRN Date: Defaults to today (change if backdating authorized)
• PO Number: Already selected or select now
• Supplier: Auto-filled from PO

Delivery Information:

• DO Number: Enter supplier’s DO number
• DO Date: Date on DO
• Vehicle Number: Delivery vehicle plate
• Driver Name: Driver’s name
• Received By: Your name (usually auto-filled)

Time Information:

• Arrival Time: When vehicle arrived
• Start Time: When unloading started
• Completion Time: When finished (can enter later)

Delivery Condition:

• Condition: Select (Good, Damaged, Partial)
• Remarks: Note any issues or special circumstances

Step 7: Enter Line Items

System displays PO line items:

For each line item from PO:

Quantity Fields:

• Ordered Qty: What was ordered (from PO) - read-only
• Received Qty: What you actually received - ENTER THIS
• Rejected Qty: Damaged/failed items - enter if applicable
• UOM: Unit of measure - verify correct

Scenarios:

Full Delivery:

Ordered: 100
Received: 100
Rejected: 0
Status: Fully Received

Partial Delivery:

Ordered: 100
Received: 80
Rejected: 0
Backorder: 20
Status: Partially Received

Delivery with Damage:

Ordered: 100
Received: 95 (good items)
Rejected: 5 (damaged)
Status: Partial - Rejected Items

Over-Delivery:

Ordered: 100
Received: 110
Status: Over-Delivered (system warns)

Line Item Details:

• Batch Number: If batch-tracked items
• Manufacturing Date: If applicable
• Expiry Date: If applicable
• Rejection Reason: If items rejected
• Line Notes: Any notes for this item

Step 8: Serial Number Entry

For serialized items (electronics, equipment, tools, assets):

Navigate to Serial Entry:

1. Click on line item
2. Click Serial Numbers button or tab
3. Serial entry screen opens

Scanning Process:

With Barcode Scanner:

1. Place cursor in serial number field
2. Scan barcode on item
3. Serial auto-enters
4. Press Enter
5. Repeat for each item
6. System counts serials entered

Manual Entry:

1. Type serial number from label
2. Press Enter
3. System validates format
4. System checks for duplicates
5. Enter next serial

System Validations:

• ✓ No duplicate serials in system
• ✓ Serial format matches requirements
• ✓ Count of serials = Received quantity
• ✓ All required serials entered

Serial Entry Tips:

• Scan in batches (all serials for one carton, then next)
• Have second person call out serials while you scan
• If scanner fails, photograph serial labels and enter later
• Double-check first few entries for accuracy

What if Serial Number Unreadable?

1. Try cleaning label
2. Check if backup label exists
3. Take photo for record
4. Contact supplier for serial number
5. Create temporary serial reference
6. Update when supplier confirms

Step 9: Storage Location Allocation

Assign physical storage locations:

Navigate to Location:

1. Click line item
2. Click Storage Location or Allocate button
3. Location assignment screen opens

Location Structure:

Warehouse: Main Warehouse
Zone: A (Fast-moving)
Aisle: 03
Rack: R-07
Level: 2 (chest height)
Bin: B-05

Full Location Code: MAIN-A-03-R07-L2-B05

Assignment Methods:

Method 1: System Suggests:

• System suggests location based on:
  • Item category
  • Available space
  • Historical location
  • Turnover rate
• Accept or modify suggestion

Method 2: Manual Selection:

• Know where item goes
• Navigate location hierarchy
• Select specific location
• Enter quantity for location

Method 3: Scan Location:

• Scan location barcode
• System auto-fills location
• Enter quantity
• Fastest method if labels exist

Split Quantity Across Locations:

If storing in multiple locations:

Item: Widget A, Total: 200 units

Location 1: MAIN-A-03-R07-L2-B05 - 150 units
Location 2: MAIN-B-05-R12-L1-B03 - 50 units

Total: 200 units ✓

Location Strategy:

• Fast-moving: Near dispatch area, chest height
• Bulk items: Lower levels, pallet positions
• Small items: Upper shelves with access equipment
• Heavy items: Ground level, bottom racks
• Hazardous: Designated safe area with controls

Label Storage Location:

• Apply location label to shelf/bin
• Place items in assigned location
• Ensure items don’t block location barcode
• Keep location organized (FIFO arrangement)

Step 10: Document Attachment

Attach all supporting documents:

Navigation: Click Attachments tab or Add Document

Required Documents:

1. Delivery Order (DO):

• Supplier’s delivery document
• Must show your signature/stamp
• Photo or scan of physical DO

2. Packing List:

• Detailed item listing from supplier
• Shows package numbers
• Weights and dimensions

3. Purchase Invoice (if delivered with goods):

• Original supplier invoice
• Often comes with delivery
• If not, will attach to invoice entry later

4. Quality Certificates (if applicable):

• Certificate of Analysis (COA)
• Test certificates
• Calibration certificates
• Material certificates

5. Damage Evidence (if applicable):

• Photos of damaged items
• Photos of damaged packaging
• Photos showing extent of damage
• Video if significant damage

How to Attach:

Mobile Photo:

1. Use mobile camera
2. Photo each document
3. Upload via mobile app or email to system
4. Fastest method at receiving area

Scan:

1. Take documents to scanner
2. Scan multi-page as single PDF
3. Upload to GRN
4. Better quality for records

File Upload:

1. Click Add Document
2. Browse to file
3. Select document type from dropdown
4. Add description
5. Upload

Document Naming:

• DO-[Supplier]-[Date]-[DONumber]
• PackingList-[Supplier]-[Date]
• Damage-[Item]-[Date]

Final Steps

Step 11: Review and Verify

Pre-Confirmation Checklist:

Data Accuracy:

• All received quantities entered correctly
• Serial numbers match count
• Storage locations assigned
• Batch/expiry dates entered (if applicable)
• Rejection reasons documented

Documentation:

• DO attached
• Packing list attached
• Damage photos attached (if applicable)
• Quality certificates attached (if applicable)

Physical Alignment:

• All items physically placed in assigned locations
• Rejected items segregated in quarantine area
• Receiving area cleared
• Delivery vehicle departed

Review Summary: Click Review or Summary button

Verify:

• Total quantity received
• Total value
• Number of line items
• Number of documents attached
• Any items rejected
• Any items back-ordered

Step 12: Confirm and Post GRN

Final Confirmation:

1. Click Confirm GRN or Post GRN

2. System processes:

   • Validates all data
   • Checks for errors
   • Creates GRN document
   • Updates inventory quantities
   • Updates PO receipt status
   • Creates accounting entries
   • Triggers notifications

3. Accounting Entries Created:

Debit: Inventory (at PO cost)        $10,000
Debit: Input Tax                      $1,800
Credit: GRN Accrual                           $11,800

4. Inventory Updated:

   • Stock quantity increased
   • Stock value updated
   • Available in assigned locations
   • Serials registered

5. PO Status Updated:

   • Fully Received (if complete)
   • Partially Received (if partial)
   • Closed (if fully received and no more expected)

System Confirmation:

• Success message displayed
• GRN number confirmed
• Print option offered

Step 13: Print and File

Print GRN:

1. Click Print GRN
2. Review print preview
3. Print copy for:
   • Physical file
   • Warehouse records
   • Accounts payable (if no direct system access)

Filing:

• File GRN with attached DO
• Place in “Pending Invoice” folder
• Organized by supplier or date
• Easily accessible for invoice matching

Notifications: System automatically notifies:

• Purchasing admin (GRN completed)
• Accounts payable (ready for invoice matching)
• Requestor (if PO had requestor)

Handling Exceptions

Partial Delivery

Scenario: Ordered 100, received 80

Process:

1. Create GRN for 80 received
2. PO remains open for 20 balance
3. Document reason (supplier out of stock, etc.)
4. Contact supplier:
   • When will balance be delivered?
   • Separate delivery or next regular order?
5. Set reminder to follow up
6. When balance arrives, create second GRN against same PO

Damaged Goods

Scenario: 10 items damaged in transit

Process:

1. Segregate damaged items immediately
2. Photo document damage thoroughly
3. Create GRN:
   • Received Qty: 90 (good items)
   • Rejected Qty: 10 (damaged)
   • Reason: Damage in transit
4. Driver acknowledgment: Get driver to sign/initial damage note on DO
5. Notify supplier immediately (email + call)
6. Request replacement or credit note
7. Quarantine area: Keep damaged goods in quarantine
8. Wait for supplier decision:
   • Return damaged goods
   • Dispose (with authority)
   • Accept with discount
9. Process credit note when received

Wrong Items Delivered

Scenario: Ordered Item A, received Item B

Process:

1. STOP: Do not receive wrong items into inventory
2. Verify: Triple-check it’s wrong (not just different packaging)
3. Photo evidence: Document wrong items
4. Contact supplier immediately
5. Options:
   • Reject completely: Driver takes back, nothing received
   • Accept temporarily: Create GRN with “On Hold” status
6. If rejecting:
   • Note on DO: “Rejected - wrong items”
   • Driver signs acknowledgment
   • Items return with driver
   • No GRN created
7. If accepting temporarily:
   • Create GRN with hold status
   • Quarantine items
   • Wait for supplier resolution
   • Reverse GRN if items return

Over-Delivery

Scenario: Ordered 50, received 60

Process:

1. System warns about over-delivery
2. Get supervisor approval before accepting
3. Check:
   • Warehouse space available?
   • Price same as ordered quantity?
   • Budget available for extra?
4. If accepting excess:
   • Receive all 60
   • Note over-delivery in remarks
   • Expect revised invoice for 60
   • Ensure accounting is notified
5. If rejecting excess:
   • Receive only 50
   • Reject 10 items
   • Driver takes back 10
   • Note on DO
6. Contact supplier:
   • Confirm acceptance or rejection
   • Clarify invoice amount

Invoice Delivered with Goods

Scenario: Supplier includes invoice with delivery

Process:

1. Receive goods normally (create GRN)
2. Collect invoice from driver
3. Attach to GRN as supporting document
4. Forward to AP: After GRN confirmed
   • Physical copy, or
   • Scan and email, or
   • System notification (AP can access attached invoice)
5. AP processes invoice normally with GRN reference

Best Practices

Do’s

• ✅ Count accurately, count twice if needed
• ✅ Scan all serial numbers
• ✅ Assign storage locations immediately
• ✅ Attach all documents before confirming
• ✅ Photo document any damage
• ✅ Process GRN same day as receipt
• ✅ Segregate damaged/rejected items
• ✅ Communicate issues immediately

Don’ts

• ❌ Rush counting to get driver moving
• ❌ Accept damaged goods without documentation
• ❌ Leave items in receiving area overnight
• ❌ Mix consignment with owned stock
• ❌ Skip serial number entry
• ❌ Create GRN without physical goods present
• ❌ Guess on quantities
• ❌ Accept over-deliveries without approval

Tips for Efficiency

Speed Up Receiving

Pre-Preparation:

• Review expected deliveries night before
• Pre-print PO copies
• Clear receiving area in advance
• Pre-assign storage locations
• Brief team on special requirements

Batch Processing:

• Process one PO/delivery at a time
• Complete before moving to next
• Don’t leave GRNs half-done

Mobile Entry:

• Use mobile devices at receiving area
• Enter data as you count
• Real-time serial scanning
• Upload photos immediately
• No need to return to desk

Team Approach:

• One person counts/scans
• Another person enters data
• Third person organizes storage
• Parallel activities save time

Maintain Accuracy

Count Methodology:

• Count in groups (tens, twenties)
• Use counting trays or bins
• Mark counted items
• Two-person count for high-value

Serial Number Accuracy:

• Scan slowly and carefully
• Verify scans are captured
• Check count matches
• Keep serials in order (easier to find later)

Location Precision:

• Use location barcodes
• Verify location exists and is correct
• Label items with location
• Update location maps if needed

Troubleshooting

Error: “PO Not Found”

Cause: PO number incorrect or PO not in system Fix:

1. Verify PO number on DO
2. Search in system (might be typed wrong)
3. Contact purchasing admin
4. If no PO: Use Direct GRN workflow

Error: “Cannot Receive More Than Ordered”

Cause: Trying to receive more than PO quantity Fix:

1. Verify physical count is correct
2. Check if over-delivery is legitimate
3. Get supervisor approval
4. System may allow with approval override

Error: “Serial Number Already Exists”

Cause: Serial number already in system Fix:

1. Verify you scanned/typed correctly
2. Check if item was previously received
3. If duplicate serial, contact supplier
4. Might be supplier error (duplicated serial)

Error: “Location Does Not Exist”

Cause: Storage location code invalid Fix:

1. Verify location code is correct
2. Check location exists physically
3. Create location in system if new
4. Use location picker instead of manual entry

Related Documentation

Workflows

• Standard Procurement Workflow - Complete purchasing process
• Direct GRN Workflow - GRN without PO
• Purchasing Overview - Daily task guide

Next Steps

• Purchase Invoice Processing - Matching invoices to GRNs
• Creating Purchase Orders - Creating POs

Module Documentation

• Purchasing Module - All purchasing features
• Inventory Module - Inventory management
• Warehouse Management - Storage and locations