This blog explains the importance of Goods Received Notes (GRNs) in inventory and procurement management and how using them efficiently improves accuracy and workflow.
When managing inventory, accuracy is everything. A Goods Received Note (GRN) is a crucial document that helps businesses confirm the receipt of items from suppliers. It serves as proof that goods were delivered as ordered, helping keep your records accurate and up to date.
Whether you're managing stock in a warehouse or tracking deliveries for a small business, using a GRN can improve your inventory management process and reduce costly errors. By verifying that what you receive matches your purchase order, you can prevent supply chain disruptions and avoid discrepancies that lead to wasted time or lost revenue.
Key Takeaways:
A Goods Received Note (GRN) is an internal document used to confirm the receipt of goods from a supplier. It plays a vital role in maintaining accuracy across procurement, inventory, and finance workflows.
Here’s what a GRN does:
A GRN can be matched against purchase orders and supplier invoices to prevent billing errors, delays in the billing cycle, or discrepancies that may affect cash flow.
While some may confuse it with a delivery note, the two are distinct. A delivery note is provided by the supplier or courier during shipment. In contrast, a GRN is generated by the buyer to acknowledge and confirm the goods receipt.
For businesses—especially those relying on small business invoicing solutions—maintaining accurate GRNs contributes to smoother operations, better stock level control, and more reliable financial records.
A Goods Received Note (GRN) is more than just a confirmation slip—it’s a critical part of your workflow that ensures accuracy in inventory, purchasing, and payment processes. To serve its purpose effectively, every GRN should include the following essential elements:
Accurate identification of both parties is vital. The GRN should clearly list the supplier’s and receiver’s names, addresses, and contact details. This information ensures traceability and supports clear communication about the goods delivered.
Each GRN should reference the original purchase order number. This helps link the received items to the order that was placed, streamlining the verification of received goods and simplifying follow-ups or disputes.
A detailed breakdown of the received items is essential. This includes product names, item codes, unit descriptions, and quantities. Recording this information allows businesses to confirm that the goods delivered match what was originally ordered and supports accurate data entry into inventory systems.
The date the goods were received must be documented. This helps with inventory turnover tracking, supports financial records, and is crucial for timing the payment of goods.
A signature from the person who received the goods serves as formal acknowledgment that the delivery has been checked and accepted. This is an important step in the verification of received items and protects your business in case of discrepancies.
Once your goods are received and verified, the next step is invoicing. If you’re still using spreadsheets or manual tools, try Tofu—the mobile invoicing app built for professionals. Create and send polished invoices in seconds, stay organized, and reduce late payments with ease.
A well-structured Goods Received Note (GRN) doesn’t just document deliveries—it helps streamline your entire inventory workflow. Here's how to effectively create and use a GRN as part of your day-to-day operations.
Begin with a clean, professional GRN format that includes space for essential fields like the purchase order number, delivery date, supplier details, and item descriptions. Whether you use paper or a digital system, consistency is key for smooth data entry and future referencing.
As the goods are delivered, compare them against your original purchase order and the supplier’s delivery note. Confirm that the received items match in quantity, type, and condition.
If there’s a mismatch between what was ordered and what was received, record it clearly on the GRN. This could include:
Capturing these issues early supports a smoother payment of goods process and reduces the risk of accounting disputes later.
Once the verification of received goods is complete, the receiving party should sign off on the GRN. This step formally confirms that the goods delivered were reviewed and accepted (or noted with exceptions).
You can then file the GRN alongside the purchase order and supplier invoice, creating a full audit trail for your accounting department and ensuring clarity throughout the billing cycle.
Send field-service invoices onsite and get paid before leaving the job.
In business logistics, it’s easy to confuse a delivery note with a Goods Received Note (GRN)—but these two documents play very different roles in the inventory process. Understanding how they differ is key to keeping your workflow, inventory balances, and payment of goods accurate.
A delivery note is a document created by the supplier or carrier at the time of delivery. It travels with the shipment and is handed to the recipient as proof of delivery. The delivery note typically includes:
However, a delivery note does not confirm whether the items received match the goods ordered, nor does it verify their quality and quantity. It’s simply a record from the supplier’s side that goods were dispatched and delivered.
Mixing up a delivery note with a GRN can lead to inaccurate stock records, confusion in audits, or even overpayment for undelivered goods. Businesses should always generate and archive both documents to support:
An effective Goods Received Note (GRN) is more than just paperwork—it’s a vital part of your order management and inventory control process. Whether you’re running a small warehouse or overseeing multiple supply deliveries each week, managing the receipt of goods accurately is key to operational success.
A goods receipt note provides confirmation that the receipt of goods has occurred as expected. By documenting what items arrived, their condition, and the quantities received, the GRN acts as a checkpoint between suppliers and your internal systems. A received note is a critical reference used by both your warehouse and accounting department.
Here’s why GRNs are essential for managing inventory:
A consistent, standard GRN process ensures better communication between your warehouse, procurement, and finance teams. It links the receipt of goods with the original purchase order, confirms delivery compliance, and strengthens your inventory records across the board.
Send field-service invoices onsite and get paid before leaving the job.
While GRNs are essential for tracking inventory, they also play a critical role in financial accuracy and legal compliance. Properly maintained goods receipt notes help protect your business during audits, support accurate accounts payable processes and workflows, and reduce the risk of invoice fraud.
In this section, we’ll focus on why GRNs matter for compliance and how to ensure yours meet necessary legal and procedural standards.
To ensure your GRNs meet compliance standards and reduce operational risk, businesses should follow these best practices:
By following these best practices, your business can strengthen financial accuracy, reduce legal exposure, and ensure every goods receipt note supports operational transparency and compliance.
Efficient handling of Goods Received Notes (GRNs) is essential for keeping inventory accurate, preventing errors, and building a more reliable supply chain. A well-managed GRN process helps you confirm deliveries, track inventory levels, and maintain a clear audit trail—all of which are crucial for operational and financial success.
But GRNs are just one part of a much larger workflow. Once goods are received and verified, the next critical step is managing invoices.
That’s where many small businesses struggle, especially when relying on manual tools like PDFs or spreadsheets. If your team is still chasing down documents or juggling outdated billing systems, it’s time to simplify the process.
Tofu can help you with that. Tofu is the all-in-one invoicing solution — available on mobile and web — built for small business owners who want a faster, more professional way to handle their billing cycle.
With Tofu, you can:
Ready to upgrade your invoicing workflow? Use Tofu on mobile or web and start invoicing smarter.
A goods received note is important because it confirms that the goods you ordered have been delivered and received as expected. It acts as a key document for the procurement department to verify deliveries and update inventory accurately, ensuring smooth order management and preventing discrepancies.
Typically, the procurement department or the receiving team creates the received note, documenting the details upon delivery. This document then serves as proof for the finance department to process payments and maintain accurate financial records.
An efficient GRN should include supplier details, description, and quantity of goods received, delivery date, purchase order number, and a signature from the person verifying the delivery. This ensures clarity and accountability throughout the procurement process.
The finance department relies on the goods received note as a key document to confirm that invoices match the goods you ordered and were properly delivered and received. This helps prevent overpayment and invoice fraud.
Yes, the importance of goods received notes lies in their role in keeping accurate stock records. They help track inventory levels in real time, allowing businesses to maintain balanced stock and avoid shortages or overstocking.
Unlike delivery notes, which are usually issued by suppliers or carriers, a goods received note is a document created by the receiver. It verifies the quality, quantity, and condition of the goods delivered and received and plays a crucial role in internal verification and record-keeping.
Send field-service invoices onsite and get paid before leaving the job.
Send field-service invoices onsite and get paid before leaving the job.