Goods received note

Goods received note

1. Goods Received Note

2. Procure to Pay Cycle Payment

3. Receiving of Goods After receiving the order, the purchases will be sent by the vendor to the to address stated on the purchase order. The purchase is received by the requestor. The requestor will check the purchase to ensure: Delivery is according to the purchase order Quality of purchase is in line as per expectation Quantity is as per the purchase order If the purchase is defective, it will be sent back to the supplier

4. Goods receipt note (GRN) The requestor after verifying the purchase will acknowledge the receipt of goods by creating a document called the Goods Received Note This document gives evidence that the purchase has been received from the vendor and the requestor is satisfied with the delivery of purchase The GRN contains no reference of the pricing details this is because the pricing details contain in supplier’s invoice Accounts payable department refers the GRN while processing the vendor’s invoice for payment

5. Goods receiving and recording Process Flow Map Goods Receipt Note Inventory Ledger Quality Check Bin Card Warehouse

6. Importance of GRN An invoice received from vendor cannot be paid without GRN of the purchase order (three way match) GRN confirms the approval of invoice to accounts payable to make the payment Timely GRN facilitates timely payment of invoices to suppliers If not performed, It increases the out standing invoices and impacts aged creditors