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A Goods Received Note (GRN) is an internal document completed by a receiving team member at the moment a supplier delivers goods. It records exactly what arrived β item codes, quantities, and condition β and links the delivery to the original purchase order. The completed GRN is the buyer's verified evidence that goods were received before accounts payable approves the supplier's invoice, making it the critical document in the three-way matching process used to control procurement spend.
Releasing payment on a supplier invoice without a verified GRN means you are paying on trust, not evidence. Short deliveries, substituted items, and damaged goods go undetected and unrecovered when there is no receipt record to compare against the invoice. Missing GRNs also break the audit trail that tax authorities and external auditors expect to see for any business with meaningful inventory or supplier spend. This template gives you a structured, consistent record for every delivery β capturing the fields accounts payable and stock control need, with a two-signature authorisation block that prevents a single person from both receiving goods and approving payment.
| If your situation is⦠| Use this template |
|---|---|
| Recording a full delivery that matches the purchase order exactly | Goods Received Note |
| Logging a partial shipment with outstanding items still to arrive | Partial Delivery Goods Received Note |
| Returning damaged or incorrect goods to the supplier | Goods Return Note |
| Accepting goods before the formal purchase order is issued | Delivery Receipt |
| Tracking raw materials arriving at a manufacturing facility | Material Receipt Report |
| Verifying services delivered rather than physical goods | Service Completion Certificate |
| Issuing an internal stock adjustment after a discrepancy is confirmed | Stock Adjustment Form |
Why it matters: Without a PO reference, accounts payable has no authorised basis to approve the supplier's invoice, creating a payment dispute or an unbudgeted liability.
Fix: Require a PO number before accepting any delivery. If a supervisor authorises an exception, document it in the GRN remarks field with the supervisor's name and date.
Why it matters: Supplier packing errors and short shipments are common. Accepting the supplier's count without verifying means shortages are absorbed silently into your stock as discrepancies.
Fix: Count every line item independently and record your own count on the GRN, regardless of what the supplier's delivery note states.
Why it matters: Damage discovered after the GRN is signed off cannot be reliably claimed against the carrier or supplier β the GRN is treated as evidence that goods arrived in good condition.
Fix: Inspect at least the outer packaging of every delivery and open a random sample of cartons for high-value or fragile items before signing off condition.
Why it matters: Single-person sign-off removes the internal control designed to catch counting errors and prevents detection of fraudulent receipts β a known procurement fraud vector.
Fix: Enforce a two-person rule: one staff member receives and signs, a different supervisor or manager authorises. Document this as a standing policy in your procurement procedures.
Enter the next sequential GRN number from your register and today's date. These two fields anchor every subsequent match in accounts payable and stock control.
π‘ Maintain a shared GRN register β even a simple shared spreadsheet β so numbers are never duplicated across receiving staff or shifts.
Record the supplier's full legal name and the PO number this delivery fulfils. Pull the original PO and keep it beside you while completing the form.
π‘ If no PO exists, do not accept the delivery until one is raised or a supervisor authorises an exception in writing β receiving goods without a PO removes your ability to control what you owe.
Record the supplier's own delivery note number from their packing slip. Check that the items listed on their note match what is physically in the delivery.
π‘ Staple or attach the supplier's delivery note to your completed GRN before filing β you will need it if a discrepancy claim arises.
Work through the PO line by line. For each item, enter the quantity ordered and the quantity actually received. Do not rely on the supplier's delivery note count β count yourself.
π‘ For high-value items, have a second person witness the count and initial the relevant line on the GRN.
Check packaging integrity and, where practical, spot-check contents. Mark each line as Acceptable, Damaged, or Requires Inspection and add specific notes for anything other than Acceptable.
π‘ Photograph any damage before moving the goods. A timestamped photo is the strongest evidence in a supplier damage claim.
For any line where quantity received differs from quantity ordered, complete the discrepancy field with specific item codes and quantities. Record the expected backorder date if the supplier confirmed one.
π‘ Notify the supplier of shortages the same day the GRN is completed β most supplier contracts have a short window (24β48 hours) for raising short-delivery claims.
The receiving staff member signs the 'Received By' block, then passes the GRN to a supervisor or manager for the 'Authorised By' signature. These must be two different people.
π‘ Only release the completed GRN to accounts payable after both signatures are in place β an unauthorised GRN should never trigger invoice payment.
Send a copy to accounts payable for three-way matching, file the original in your GRN register, and update your inventory system with the received quantities.
π‘ Update stock records on the same day β delays cause inventory inaccuracies that compound quickly in high-volume operations.
A goods received note (GRN) is an internal document completed when a supplier delivers goods to your premises. It records what arrived, in what quantities, and in what condition β creating a verified record that accounts payable uses to approve the supplier's invoice for payment. Without a GRN, there is no internal evidence that goods were actually received before money leaves the business.
A GRN is one leg of the three-way match β the standard accounts payable control that compares the purchase order, the supplier invoice, and the GRN before releasing payment. If the GRN shows a short delivery, accounts payable can hold partial payment until the remainder arrives. Without a GRN, invoices are approved on trust rather than verified receipt.
A delivery note is issued by the supplier and accompanies the shipment β it lists what the supplier claims to have sent. A GRN is created by the buyer and records what was actually received. The two documents should match; discrepancies between them are exactly what the GRN process is designed to surface and document.
No statutory law requires businesses to use a GRN. However, it is standard practice in procurement and accounts payable because it creates an auditable record of receipt. Auditors, tax authorities, and lenders expect to see internal controls like three-way matching for any business with material inventory or supplier spend.
Record the exact discrepancy in the dedicated field on the GRN β item code, quantity ordered, quantity received, and condition. Notify the supplier in writing the same day, as most contracts specify a short claim window of 24β48 hours. Pass the GRN to accounts payable flagged for partial payment only, and follow up until the remaining goods arrive or a credit note is issued.
A GRN is designed for physical goods deliveries. For services, a service completion certificate or project sign-off form serves the equivalent purpose β confirming that the agreed work was performed before the service provider's invoice is approved. Using a GRN for services creates confusion in stock records and misrepresents the nature of the transaction.
Retain GRNs for at least as long as your jurisdiction requires you to keep accounting records β typically 5β7 years in most countries. GRNs are supporting documents for invoice payments and may be requested during a tax audit or a supplier dispute. Store them alongside the corresponding PO and supplier invoice for easy retrieval.
Yes, each delivery should have its own GRN referencing the relevant PO. A single supplier delivery may partially fulfil multiple POs, in which case each PO line should be identified separately on the GRN. Combining deliveries from different POs onto a single GRN makes three-way matching error-prone and complicates any subsequent discrepancy resolution.
A purchase order is issued by the buyer before delivery to authorise and specify what should be supplied. A GRN is completed after delivery to confirm what was actually received. They are matched together β along with the supplier invoice β in the three-way matching process. You need both: the PO authorises the spend; the GRN confirms the receipt.
A delivery note is the supplier's document listing what they claim to have shipped. A GRN is the buyer's document recording what was physically received. Discrepancies between the two are the basis for shortage claims and partial payment holds. The GRN is the authoritative internal record; the delivery note is the supplier's representation.
A supplier invoice is a payment request. A GRN is the internal verification that goods were received before that payment is approved. Releasing payment on an invoice without a matching GRN bypasses the primary control against paying for goods that were never delivered or were returned.
A stock adjustment form corrects inventory records after an error is confirmed. A GRN is completed at the point of delivery to record what arrived. GRN discrepancies often trigger a stock adjustment, but the two documents serve different purposes β receipt recording versus inventory correction.
High delivery frequency means sequential GRN numbering and same-day stock updates are essential to keep inventory records accurate.
Raw materials and components are received against specific production orders, making quantity accuracy on the GRN critical to preventing line stoppages.
Materials arrive at site in phases tied to project milestones; GRNs link deliveries to specific cost codes for accurate project cost control.
Batch numbers, expiry dates, and cold-chain temperature on arrival must be recorded alongside standard quantity and condition fields to meet regulatory requirements.
| Path | Best for | Cost | Time |
|---|---|---|---|
| Use the template | Small and medium businesses managing supplier deliveries without an ERP system | Free | 3β5 minutes per delivery |
| Template + professional review | Businesses integrating GRN workflows into a formal procurement policy or employee handbook | $100β$300 (operations consultant or accountant review) | Half a day |
| Custom drafted | Enterprises with ERP integration requirements, regulated industries needing batch/serial number fields, or multi-site operations | $500β$2,000 (ERP configuration or custom form development) | 1β4 weeks |
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