What is Goods Receipt Note: In Simple Terms

Goods Receipt Note or GRN is a document that acknowledges that the delivery has been executed successfully by the seller to the customer. And this receipt conveys that the goods have been delivered without any forthcomings like damage, exposed packaging or wrong product.

What is GRN: Technical Definition

ClickPost defines GRN (Goods Receipt Note) as the two-way receipt for the seller and the customer that validates the successful delivery of commodities to the content of all parties involved by maintaining quality and quantity without any damaged items, tampered packaging, missing items, or wrong products. 

What Does GRN Contain

  • Shipper information

  • Product dimensions and type

  • Delivery time

  • Delivery address

  • Quantity of commodities

  • Details of the receiver

  • Signature of the receiver

  • Order number

What is the Purpose of GRN

The primary purpose of GRN would be the acknowledgment of delivery to the consignee where the content of the commodities is received in a satisfying condition. And the signature of the receiver is registered on the receipt. This receipt is further used to:

  • Keep track of the supply chain operations

  • Inventory management

  • Record keeping

  • Prevent wrong deliveries

  • Safeguard from malpractice 

  • Avoid errors in the delivery system

  • Maintaining liability of parties involved

What are the Benefits of Goods Receipt Note

GRN is important in 

  • Tracking the time and place of final delivery

  • Assisting suppliers go forward quickly with payment authorization

  • Negating risks of authorizing faulty and damaged goods

  • Making it simple to take up issues of stolen and lost goods

What is the Difference Between GDN and GRN

A Goods Despatch Note or GDN is a document that's used by the supplier's despatch department to send out goods. It's raised when they need something shipped, and one copy is kept for their records while sending another over to accounts who will process invoices from there on out to carry out the rest of the operations - without this note being delivered, no customer can get charged (and vice versa). These notes are sequentially numbered, which helps maintain records and find missing notes.

Goods Receipt Note or GRN is used as a receipt by the seller and the customer to validate a successful transaction of the goods. This note is the proof of delivery without which the particular strand of the product supply chain cannot be closed as completed. GRN also acts as the confirmation note in the supply chain that can be matched with the contents on the invoice and the contents delivered.

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