Features of Goods Received Note (GRN)
1. Confirmation of Goods Receipt: A GRN is a written acknowledgement that the seller has successfully delivered the goods to the customer, verifying their condition in accordance with the purchase order.
2. Legally Binding Record: The GRN holds legal significance and can serve as evidence in case of disputes between the buyer and seller.
3. Essential Information: Typically, a GRN includes crucial details such as the buyer’s and seller’s names and addresses, purchase order number, delivery date and time, a description of received goods (including product name, quantity, and specifications), the condition of the goods, and signatures from both parties.
4. Inventory Management Tool: GRNs play a vital role in updating inventory records, ensuring that the correct quantity of goods is maintained in stock.
5. Accounts Reconciliation Tool: They are also instrumental in reconciling supplier invoices with the received goods, ensuring accurate payments.