GRN / Goods Receipt Note

A Goods Receipt Note (GRN) is the receiving-side counterpart of the purchase order. It is created when goods physically arrive at a warehouse, depot, or distributor godown, and records what was actually received — quantities, batch numbers, manufacturing and expiry dates, and the condition of goods. The GRN is then matched against the PO and the supplier's tax invoice to flag discrepancies before payment is released.

In Indian dairy and FMCG distribution, GRN accuracy is critical because short-shelf-life products must be verified for shelf life compliance at the point of receipt. A distributor receiving 1,000 pouches of curd with only 3 days of shelf life remaining may reject the entire lot at GRN stage. Similarly, FIFO and FEFO protocols begin at GRN — incoming batches must be slotted into the inventory system with correct dates so that the oldest or earliest-expiring stock moves out first.

Digital order management platforms allow GRN to be completed on a mobile device at the godown, scanning barcodes against the PO, capturing photos of damaged goods, and auto-updating inventory counts. Any PO-GRN mismatch triggers an alert for investigation before the invoice is accepted for payment.