Glossary · also called Goods Receipt Note, Goods received note, Material receipt note, MRN
What is a GRN (Goods Receipt Note)?
GRN: A GRN (goods receipt note) is the document a business creates when it receives material from a supplier. It records what arrived against the purchase order — item, quantity, condition and date — and is the point at which stock increases and the business accepts the goods, making it one leg of the three-way match before the supplier is paid.
Definition
A purchase order says what you asked for. The supplier’s invoice or delivery challan says what they claim to have sent. The GRN says what you actually received. It is created by stores, or on a construction site by the store keeper, after counting and checking the delivery.
A GRN usually records the PO reference, supplier, challan or invoice number, items, quantities ordered, received and accepted, any rejected quantity with reasons, and the receiving location.
How it works
An example, with illustrative numbers only:
| Item | PO qty | Challan qty | Received | Accepted | Remark |
|---|---|---|---|---|---|
| MCCB 250 A 4P | 10 | 10 | 10 | 10 | — |
| Contactor 32 A | 40 | 40 | 38 | 36 | 2 short, 2 damaged |
| Cement OPC 53 | 200 bags | 200 | 200 | 195 | 5 bags set |
Only accepted quantities should go into stock. The shortages and rejections feed the three-way match: the supplier’s invoice should be settled for what was accepted, not what was claimed. On a construction project, the GRN is also the point at which committed cost becomes actual cost in the cost ledger.
Common mistakes
- Stock entered without a GRN, so nobody can trace how it arrived.
- Copying the challan quantity instead of counting.
- GRNs raised days later, after material has already been issued.
- No link to the PO, which makes invoice matching manual.
- Accepting goods without checking specification — rating, make or grade — as well as quantity. A wrong item counted correctly is still a wrong item.
In Zaptiz
In Zaptiz Electrical, confirming a GRN is the single, auditable way stock enters, and supplier invoices are matched across PO, GRN and invoice. In Zaptiz Construction, posting a GRN updates stock and PO receipts and moves committed cost into inventory. In both, an AI reader can match a supplier invoice or challan to the PO and prepare a draft GRN with differences flagged — a person confirms it.