[ecis2016.org] Know all about Goods Received Note, a document that acknowledges that the goods have been delivered to a customer by the supplier.
GRN full form is Goods Received Note. It is a document that acknowledges that the goods have been delivered to a customer by the supplier. It helps the customer draw a comparison between the goods that were ordered and the goods received.
You are reading: All about Goods Received Note (GRN)
The Goods Received Note document helps businesses avoid burdens in the long run. The goods once received by the business are inspected well and looked into. Once the store management and sales department consider the goods in perfect physical condition, they issue a GRN. If the goods are not in the state that was ordered, the buyer has the liberty of rejecting these goods. The buyer will issue a GRN only for the goods that were found to be good enough and may reject the ones that are not in good physical condition.
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Several copies of the GRN are prepared and sent across to various departments concerned. Namely, the supplier, procurement department, accounts department and the store’s department retention.
Who sends a GRN?
GRN is a two-way document helping a supplier acknowledge the delivery of goods and a buyer the receipt of those goods.
Format of a GRN
| Goods Received Note | |||||
| Supplier Name: | ……………………………… | Date & Time | ……………………………… | ||
| Order Number: | ……………………………… | Delivery Location | ……………………………………….. | ||
| Sr. No | Goods Description | Size | Quantity | Comments | |
| 1 | |||||
| 2 | |||||
| Total: | |||||
| Received By: | ……………………………….. | Checked By: | ………………………………… | ||
A GRN must contain the following information-
- Name of the supplier
- Time and date of delivery
- Details of the product received, including name, quantity and quality
- Signature of store manager
- Signature of supplier/representative in case the supplier is not available.
Process of issuing a GRN
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The following process must be followed while issuing a GRN:
- Receive invoices and purchase orders for the goods.
- Supervision of unloading of the goods must be done.
- Conduct physical verification of the goods received and ascertain both quality and quantity as to your requirement.
- Inform the supplier of shortcomings, if any.
- Once verified, the store’s department will issue a GRN. The copies are sent across to various departments of the store as well.
- Update the ledger accordingly.
Thus, the GRN will act as proof of the transactions and exchanges taking place between the store and the supplier and prevent any burdens or disputes that might occur in the future.
We must ensure with the utmost care that all the relevant information is undoubtedly mentioned in the GRN to ensure that no other argument occurs in the future.
Advantages of GRN
- The GRN acts as a confirmation from the customer to the supplier about the goods received.
- It acts as a record for the future in case of audits and disputes.
- It helps validate the quantity and quality of the goods that were received by the buyer.
- It helps keep track of the inventory levels and helps ascertain accuracy.
- It also helps in accounting, as it acts as an important means to update the ledgers as well.
Issues associated with a GRN
- A GRN issuance takes time.
- Too much emphasis on communication between the supplier and the buyer.
- If there are any recording errors, it could delay the issuance and acceptance of a GRN further.
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