OrderSync LogoOrderSync
Order Ops

Goods Received Note (GRN)

A goods received note (GRN) is the buyer's record that a delivery arrived, listing what was received, in what quantity and condition, against which purchase order. Receiving staff create it at the dock. Accounts payable uses it as the second document in the three-way match, so an invoice is only paid for goods actually received.

What a GRN records

A GRN captures what physically arrived, which may differ from what was ordered or shipped.

  • GRN number and receipt date
  • Supplier name and the PO number
  • Delivery note, packing slip, or ASN reference
  • Item numbers and descriptions
  • Quantity ordered, quantity received, and quantity rejected
  • Condition notes: damage, shortages, wrong items
  • Who received and checked the goods

GRN in the three-way match

Accounts payable compares three documents before paying: the purchase order says what was ordered, the GRN says what arrived, and the invoice says what the supplier billed. If the invoice bills 100 cases and the GRN shows 96, AP pays for 96 and the supplier needs to issue a credit memo or dispute the receipt.

GRN vs delivery note

The supplier sends the delivery note or packing slip with the goods. The buyer creates the GRN after checking them. The delivery note says what should be there; the GRN says what was there. In SAP, the goods receipt is posted in transaction MIGO with movement type 101, and EDI buyers can send it back to the supplier as an 861 receiving advice.

Related Terms

Three-Way Match
A three-way match is an accounts-payable control that compares three documents before an invoice is paid: the purchase order, the receiving record, and the supplier invoice. The quantities, prices, and terms must agree across all three. If they match, payment is approved. If they do not, the invoice is held for review.
Purchase Order (PO)
A purchase order (PO) is a buyer's official offer to purchase goods, listing items, quantities, prices, delivery dates, and ship-to location. It becomes a binding contract once the seller accepts it. In EDI it is the 850 transaction, the document that starts most B2B order flows.
Packing Slip
A packing slip is a document included with a shipment that lists what is inside: items, quantities, and the order it fulfills. The receiver uses it to check the delivery against the purchase order before signing. Unlike an invoice, it usually shows no prices. It travels inside or attached to the carton, often in a pouch marked packing list enclosed.

Learn More

EDI 861 Receiving Advice GuideThe Goods Receipt ProcessThree-Way Match Explained

Related Resources

EDI GuideEDI 997 Functional Acknowledgment: Complete GuideBlog PostFSMA 204 KDEs From Suppliers Who Do Not Send EDIBlog PostSelf-Billing and ERS: Buyers Invoice Themselves

Frequently Asked Questions

The buyer's receiving or warehouse team prepares it when the delivery is checked in.

Yes. Goods received note, goods receipt, and receiving report all describe the buyer's record of what arrived.

Sources: X12 transaction set index

How to Answer "Are You EDI Capable?"

A buyer asked, and you need to answer this week. The four things they are checking, what you can say yes to today, and a realistic date for the rest.

  • What a buyer is really asking when they ask this
  • The minimum set-up that makes the answer yes
  • What you can answer today versus what needs building
  • Rough timelines, so you can give a date rather than a maybe

One email with the download. Unsubscribe any time.

Automate every order format

OrderSync processes EDI, PDF, email, and fax orders into your ERP with AI extraction and validation. No VAN middleware.

Book My Intro CallTry Free EDI Inspector