# 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.

## FAQ

### Who prepares a goods received note?

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

### Is a GRN the same as a receiving report?

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

## Sources

- [X12 transaction set index](https://x12.org/codes)