Goods Received Note (GRN)
An internal document confirming that goods from a supplier order have been physically received and checked against the original purchase order. Forms the third document in three-way matching alongside the PO and supplier invoice.
A goods received note (GRN) is the internal document created when supplier goods arrive. Unlike the delivery note - which the supplier produces and sends with the shipment - the GRN is raised by the receiving team after physically verifying what has arrived. It records the quantity received, notes any discrepancies or damage, and links the delivery to the original purchase order. Without it, there is no verified basis for approving a supplier invoice for payment.
The GRN in Three-Way Matching
The GRN is the third document in three-way matching: the purchase order sets out what was ordered, the supplier's delivery note records what was sent, and the GRN confirms what was actually received in acceptable condition. All three must agree before any supplier invoice is approved for payment.
If a supplier sends 48 units against a purchase order for 50, the GRN records 48. The shortfall sits as an open order line until a credit note or follow-up delivery resolves it. Without the GRN, an accounts payable team may approve payment for 50 units based on a delivery note with no verified physical count.
Do not sign the delivery note before checking
Signing a supplier's delivery note before counting and inspecting the goods is the most common GRN failure. Once signed, the supplier has documented evidence of full delivery. Record any discrepancies on the delivery note before signing it, then raise the GRN to reflect what was actually received.
GRNs also support supplier performance tracking - consistent short deliveries or damaged goods become visible in the GRN history. On construction, AV, and furniture projects where goods arrive from multiple suppliers across multiple deliveries, a GRN per delivery is what keeps three-way matching intact.
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