Goods received note (GRN): meaning, template and example

• Proof of delivery. Without a receipt, AP cannot tell a short shipment from a full one and pays whatever the invoice says.
• The basis for the match. In three-way matching, the invoice quantity is checked against the quantity received, not the quantity ordered.
• Disputes and credits. A dated, signed GRN listing damaged or missing items is the evidence you need to claim a credit note.
• Month-end accruals. Receipts with no invoice yet are a liability. The list of open GRNs is where that accrual starts.
• Stock accuracy. For inventory, the GRN is what raises stock on hand, so a missed receipt shows up later as a stock count difference.

In a warehouse that is the receiving or stores team. In an office or on a job site it is often the requester or the site manager. Whoever it is, they should check the goods against the PO, not just against the supplier’s delivery note, because the delivery note only says what the supplier thinks it sent.

Timing matters. A GRN written days later, or written by AP when the invoice turns up, is a reconstruction rather than a count. Record it the same day, and note shortages or damage on the carrier’s paperwork before signing for the delivery.

The delivery note and the GRN are easy to confuse because both travel with the goods. The difference is who wrote it. If the delivery note says 100 and your team counted 96, the GRN says 96, and AP pays for 96.

The mechanics are similar across systems. In Business Central you enter a Qty. to Receive on the purchase order and post it, and a receipt can be partial (Microsoft Learn). In NetSuite a part-received order shows as Partially Received and is billed for what was received (Oracle NetSuite Help).

Matching runs line by line. For each invoice line, the billed quantity should not exceed the quantity received and accepted to date, less anything already invoiced. Some ERPs enforce this outright: Business Central will not let you invoice a purchase order line until a receipt is recorded, unless you receive and invoice in one step (Microsoft Learn).

The receipt also drives the accounting. In systems that use a goods received not invoiced (GRNI) or GR/IR clearing account, the receipt books the liability and the matched invoice clears it. SAP notes that a quantity difference between the goods receipt and the invoice leaves a balance on that account until another receipt or invoice clears it (SAP Help). The three-way matching guide walks through the journal entries.

ERPs handle over-receipts deliberately. Business Central, for example, lets you set an over-receipt tolerance percentage per item or vendor, and leaves the financial side, such as a revised invoice, for you to agree with the vendor (Microsoft Learn). For part-delivered orders billed in stages, see partial invoices.

Common forms are an approved timesheet, a milestone or acceptance certificate, or a one-line confirmation from the requester in your approval workflow. Where none of that is practical, use two-way matching against the PO plus an approval from the budget owner.

AP sends the supplier the GRN and asks for one of two things: a credit note for $150, or a corrected invoice for 94 units. If the 4 missing boxes are still coming, the PO line stays open for them and they are invoiced once received. The 2 damaged boxes go back with a returns reference. Paying the invoice as billed would have cost $150 for goods the business never accepted.

1. 1

   Step 1

   Before the delivery is signed for, find the purchase order it relates to, using the PO number on the supplier’s delivery note.
2. 2

   Step 2

   Count every line and compare item, quantity and unit of measure with both the delivery note and the PO.
3. 3

   Step 3

   Inspect the goods for damage, wrong items and expired or out-of-spec stock, and note any rejections with the reason.
4. 4

   Step 4

   Record the goods received note the same day: GRN number, date, supplier, PO number, delivery note number, and quantity received, accepted and rejected per line.
5. 5

   Step 5

   Note any shortage or damage on the carrier’s or supplier’s paperwork before signing, and tell the buyer.
6. 6

   Step 6

   Sign and date the GRN, attach the delivery note and any photos, and post the receipt against the PO in your system.
7. 7

   Step 7

   Send rejected goods back with a returns reference and ask the supplier for a credit note or replacement.

• Receiver independent of buyer and AP. If one person can raise the PO, confirm receipt and approve the invoice, the match proves nothing. See segregation of duties.
• Copying the delivery note. A GRN that repeats the supplier’s quantities without a count is not evidence of anything.
• Recording receipts late. Invoices that arrive before the GRN fail the match and pile up as exceptions, and AP is tempted to approve around the control.
• Header-only receipts. Ticking a PO as received in full hides shortages on individual lines. Receive line by line.
• Unit of measure mismatches. Count in the unit on the PO. Receiving 4 cases against a PO for 100 units breaks the match.
• Ignoring GRNI at month-end. Receipts with no matched invoice are a liability you owe. Review the open list as part of the month-end close, accrue them, and chase anything older than a month: it is often a lost invoice or one paid without a match.

• Three-way matching. Invoices are matched to the PO and to delivery notes line by line, so a quantity billed but not delivered is flagged on that line.
• Exceptions with a reason. An invoice that fails the match becomes an exception with the reason, an owner and an SLA, rather than sitting in someone’s inbox.
• Partial invoices. Installment and part-delivery invoices that fit within what is left on the PO are recorded as partial invoices, with billed-to-date tracked per PO and per line.
• One ledger. Approved bills sync to QuickBooks Online, Xero, FreshBooks, Zoho Books or Business Central.

Aequo AP does not count or inspect deliveries, so your receiving team still owns the goods received note. It also does not pay suppliers; payments run from your accounting system or bank. See three-way matching in Aequo AP.