A goods received note (GRN), or receiving report, records what the receiving team observed at a delivery: the items, quantities, units, date, location and exceptions. It provides evidence for inventory records, supplier follow-up and invoice review.
The purchase order and the GRN are both typically buyer-side records. The PO describes the purchase commitment; the GRN records the actual delivery. Neither a supplier confirmation nor an invoice proves that the goods were physically counted.
GRN versus packing slip and invoice
| Document | What it records | What it does not establish by itself |
|---|---|---|
| Purchase order | Requested or accepted commercial commitment | Physical delivery |
| Packing slip | Supplier's shipment description | Buyer's verified count or acceptance |
| GRN | Actual receipt and recorded exceptions | Automatic approval to pay |
| Invoice | Supplier's payment request | Goods received or released for use |
A receiver can annotate a packing slip as part of the evidence, provided the actual checks, corrections, date and responsible person are preserved. The problem is copying the supplier's claimed quantity into inventory without verification, not the name of the paper form.
What to include
- Receipt reference and related PO or delivery reference.
- Supplier, destination and receipt date/time.
- Item identifiers, descriptions and units of measure.
- Expected quantity for this delivery and actual delivered quantity.
- Accepted, damaged, rejected or inspection-pending quantities as applicable.
- Receiver identity, notes and supporting evidence.
- Lot, serial, expiry or other traceability fields where the item and process require them.
Define which fields are mandatory for your operation. Requirements vary; a generic GRN template is not proof of regulatory compliance or quality release.
Worked example: an expected 12-case delivery
A fictional order is for 20 cases. The accepted schedule says 12 cases today and eight next week. Today's receiver counts 10 cases, of which two are damaged.
| Record | Cases |
|---|---|
| Expected in today's delivery | 12 |
| Physically delivered today | 10 |
| Accepted as usable in this example | 8 |
| Damaged, awaiting resolution | 2 |
| Missing from today's scheduled delivery | 2 |
| Scheduled for next week | 8 |
The delivery quantity variance is 10 − 12 = −2 cases. That does not include the two damaged cases, which are a separate acceptance exception. The future eight cases are not automatically late merely because they have not arrived today.
The buyer must resolve the damage and missing quantity with the supplier. Replacement, return, credit or cancellation are different outcomes. Preserve the decision rather than converting every exception into a new order automatically.
Receiving is not the same as counting all stock
A receipt records an incoming event. A cycle count checks the balance already held at a location. Counting ten delivered cases does not establish the total stock on the shelf.
Inventory effects depend on the configured process. Goods may enter a receiving or inspection location before becoming available. If the ERP owns receiving, avoid recording the same physical movement again in a separate purchasing tool. Confirm item, pack and location mappings before posting an update.
For weight-priced goods, retain the actual measured quantity and unit. Compare it with the agreed pricing basis and tolerances; do not assume the ordered weight is the final invoice quantity.
GRNs and invoice matching
Three-way matching compares the purchase order, receipt and invoice under defined tolerances. Four-way matching additionally checks accepted quantities from inspection; it does not necessarily require a separate paper certificate. Oracle's matching-level documentation illustrates these distinct checks.
An invoice may arrive before, with or after the goods. A deposit or partial-delivery invoice is not automatically wrong because the final receipt is missing. Receipt matching can support payment for partial shipments. The finance owner should apply the agreed terms, authorization and exception policy to the relevant quantities.
A successful quantity comparison does not resolve every issue. Pricing, freight, tax, coding, duplicate invoices and payment authorization still need their appropriate controls.
Make the receipt useful to the next person
Keep each delivery's evidence linked to the order and preserve earlier receipts. A later shipment should add to the history, not overwrite the first count. Distinguish corrections, returns and additional deliveries so a repeated upload cannot silently double stock.
The receiving checklist template is a starting point for a manual process. For recurring partial deliveries, evaluate LineNow's purchase-order receiving workflow with one shortage and one damaged item.
A living PO can make accepted supplier changes available before the delivery. The receiver still records what actually arrived; an earlier confirmation does not guarantee a correct shipment or eliminate invoice discrepancies.