What is a Goods Received Note (GRN)?
A Goods Received Note (GRN) is an essential document in the procurement process that confirms the receipt of goods from a vendor. It verifies that the items delivered match the purchase order (PO) in terms of quantity, quality, and specifications.
Steps to Create a Goods Received Note (GRN)
1. Accessing Vendor Invoice:
- Navigate to the "Vendor Invoice" page from the "Purchases" menu.
- Identify the vendor invoice associated with the delivery for which you need to create a GRN.
2. Initiating GRN Creation:
- Click on the dropdown menu under the "Action" column for the relevant invoice.
- Select "Create Goods Received Note."
3. Filling in GRN Details:
- Vendor Invoice Number: This is auto-filled from the selected vendor invoice.
- Vendor: Automatically populated from the invoice details.
- Warehouse: Select the warehouse where the goods have been received.
- Items/Services: The items related to the invoice will be displayed with details such as name, unit of measurement, and invoice quantity.
- Received Quantity: Enter the quantity of each item received.
- Short Quantity: If the received quantity is less than the invoice quantity, the shortfall will be calculated automatically.
- Excess Quantity: If the received quantity exceeds the invoice quantity, the excess will be displayed here.
- Rejected Quantity: If there are any items that don't meet the required standards, enter the rejected quantity.
- Accepted Quantity: This is auto-calculated based on the received and rejected quantities.
- Remarks: Enter any notes or comments regarding the delivery.
4. Receiving and Accepting All Items:
- If all items have been received and accepted as per the invoice, check the box labeled "Receive and Accept All Items."
5. Recording the GRN:
- Received By: Enter the name of the person who received the goods.
- **Received Date:** The date when the goods were received.
- After filling in all the necessary details, click "Submit" to finalize the GRN.
6. Reviewing the GRN:
- Once submitted, the GRN will appear in the "Goods Received Note" section under "Purchases."
- The status of the GRN will be marked as "Pending" until approved.
7. Approving the GRN:
- To approve the GRN, navigate to the "Goods Received Note" section, locate the GRN, and select "Approve" from the dropdown menu under the "Action" column.
- Once approved, the GRN cannot be edited and the inventory is updated automatically.
Importance of GRN in the Procurement Process
- Inventory Management: GRN ensures that the inventory records are accurately updated with the quantities received.
- Payment Process: GRN acts as a proof of receipt and is essential for processing vendor payments.
- Quality Control: GRN records any discrepancies or quality issues, which helps in maintaining standards and negotiating with vendors.
Conclusion
Creating a Goods Received Note (GRN) is a critical step in managing the procurement process efficiently. It not only updates your inventory but also ensures that the payment process aligns with the actual goods received, safeguarding your business against discrepancies.