Safeguard your finances with a GRN. This essential document verifies received goods and ensures accurate payments. This explains the GRN's function and its impact on financial accuracy.
Overview:
A goods received note (GRN) is a document used to acknowledge the receipt of goods by a customer from a supplier. It is essentially a confirmation that the ordered goods have been delivered and accepted by the customer.
What Information Does a GRN Contain?
A GRN typically includes the following information:
- Supplier name and address
- Customer name and address
- Date of delivery
- Purchase order number
- Description of the goods received
- Quantity of goods received
- Unit price of goods
- Total value of goods received
- Signature of the person who received the goods
Why is a GRN Important?
GRNs are important for several reasons:
- They provide a record of the goods that have been delivered, which can be used to verify invoices and track inventory levels.
- They can help to prevent disputes between suppliers and customers, as they provide a clear record of what was ordered and delivered.
- They can be used to track the progress of deliveries, which can help to improve efficiency and reduce costs.
How is a GRN Used?
When a customer receives a delivery of goods, they should check the goods against the GRN to ensure that everything is correct. If there are any discrepancies, the customer should contact the supplier immediately. Once the goods have been checked, the customer should sign the GRN and return a copy to the supplier.
Process to Issue Goods Received Note
Issuing Goods received note (GRN) involves several key steps to ensure accuracy and smooth inventory management. Here’s a breakdown of the typical process:
Preparation:
- Gather documents: Before delivery, have the purchase order (PO) and supplier’s invoice readily available. These documents will be used to verify the details of the expected goods.
- Assign personnel: Designate a responsible person or team to receive, inspect, and document the delivered goods. This person should be familiar with the PO and product specifications.
Delivery and Inspection:
- Verify arrival: Upon delivery, confirm the supplier and delivery details match the PO.
- Unload and inspect: Supervise the unloading of goods and conduct a physical inspection against the PO. This includes checking:
- Quantity: Ensure the number of items received matches the PO quantity.
- Quality: Inspect the goods for any damage, defects, or discrepancies from the PO specifications.
- Packaging: Verify the packaging is intact and appropriate for the goods.
Documentation and Discrepancies:
- Record findings: Document any discrepancies or shortages on the GRN. This could involve noting damaged items, missing quantities, or incorrect specifications.
- Inform supplier: Immediately notify the supplier of any discrepancies identified during inspection. This allows for prompt resolution and avoids payment delays.
GRN Issuance:
- Complete GRN: After verifying and documenting the goods, complete the GRN with the following information:
- Supplier name and address
- Customer name and address
- Date of delivery
- Purchase order number
- Description of goods received
- Quantity of goods received (adjusted for discrepancies)
- Unit price of goods (from PO)
- Total value of goods received
- Signature of the person who received and inspected the goods
- Distribute GRN copies: Distribute copies of the GRN to relevant departments, including:
- Supplier (one copy as acknowledgment)
- Accounts payable (for invoice processing)
- Inventory management (for updating stock levels)
- Receiving department (for record-keeping)
- Update records: Based on the GRN, update inventory records to reflect the received goods and any discrepancies.
Format of Goods Received Note
The format of a goods received note (GRN) can vary depending on the needs of your business, but it should generally include the following information:
Header:
- Company Name and Address: This should be your company’s information, prominently displayed at the top of the document.
- GRN Number: Assign a unique identifying number to each GRN for easy tracking and reference.
- Date: The date the goods were received.
Supplier Information:
- Supplier Name and Address: Clearly identify the supplier who delivered the goods.
- Purchase Order Number: Reference the corresponding purchase order for easy invoice reconciliation.
Goods Received:
- Item Description: Provide a clear and concise description of each item received.
- Quantity: Indicate the number of units received for each item.
- Unit Price: List the price per unit of each item, as per the purchase order.
- Total Price: Calculate and display the total price for each item (unit price x quantity).
Inspection and Discrepancies:
- Inspection Findings: If any discrepancies are found during inspection, such as damaged goods, missing items, or incorrect specifications, note them clearly in this section.
- Signature: The person who conducted the inspection should sign and date the GRN.
Authorization:
Signature: An authorized representative from your company should sign and date the GRN to acknowledge receipt of the goods.
