What is the full form of GRN

GRN: Goods Receipt Note

GRN stands for Goods Receipt Note. There are many other full forms for the term GRN, but Goods Receipt Note is the most applicable and relevant. GRN stands for the Goods Receipt Note only for certain aspects of living such as in Retail, GST, Store, etc. Goods Receipt Note (GRN) is a significant term for business units, and it plays a vital role in accountability. It is a document which can reduce unwanted burdens in future. A note is given to the customer, which is used to acknowledge the receipt of products bought. The customer itself fills up the note in order to check the products ordered and delivered. Records regarding this are stored with the senior members of the organization from whom the purchases are made.

The Goods Received Note (GRN) is proof of the goods received, summarizing the details as a report. It is somewhat referred to as a shipping notice. Nowadays, it can be used as proof that customers have already received the product. This helps to know all the details about the respective order, including the delivery date and the order amount.

Companies also use Goods Received Note (GRN) internally. The note is given even if the product is transported from the mill to different warehouses in different areas. Also, the core-building materials are moved to the corresponding building site accordingly. In these given conditions, the Goods Received Note (GRN) is used in order to prevent fraud or mistakes. This also helps the accounting departments to document the place-to-place translocation of the inventory.

In easy words, the Goods Received Note (GRN) is a list of the products purchased from the service providers and acts as evidence of bought goods being handed over to the owner. Along with this, the note helps the customer to assess the amount of exchange that has happened. The listings are used by many businesses, factories, procurement, and accounting departments to use it for upgrading the inventory along with the procured payment.

Post the receiving of goods by the purchaser, the store inspects and examines the condition of the goods. Once a positive outcome comes from the inspection that the goods received are in proper condition, the Goods Received Note (GRN) is given by the department. In case the report of the assessment comes out to be negative, the customer may reject the goods. Here, the customer issues the Goods Received Note (GRN) only post the approval of the goods and process for a new order of the rejected set. The Goods Received Note (GRN) is prepared in many copies, each for the supplier, procurement department, accounts department, and for retention purposes in the store.

Uses of Goods Received Note (GRN)

The Goods Received Note (GRN) performs the work of providing confirmation for delivering goods or services to both parties. It is used in many cases, such as -

• For future record purposes: A record is kept for future reference in dispute or grievance management or for audit.
• For the goods examination purpose: The service provider comes to know about the quality of the product after the GRN is accepted, and hence it can be informed to the supplier.
• For managing inventory: Goods Received Note (GRN) provides assistance in tracking and maintaining inventory levels.
• For assistance in accounting: The accountants receive a confirmation of the balances of inventory and provide an update for stock entry.

Features of Goods Received Note (GRN)

Goods Received Note (GRN) assists the customer and supplier in maintaining the agreement of binding. This help improves inventory level stock. The following essential details are added in GRN to know the complete information about the product and delivery at any time:-

1. Name of supplier
2. Name of supplier's organization
3. Time and date of the delivery
4. Details of products received, including the name, technical specifications, quantity, size, type, etc.
5. Name and signature of stores manager
6. Name and signature of supplier/representative of the supplier
7. Name of receiving organization
8. Name and signature of receiver
9. Purchase order number

Format of a Goods Received Note (GRN)

A GRN has the following format (sample):
Supplier Name:………………………………	Date & Time	………………………………
Order Number:………………………………	Delivery……………………………… Location…………………………………..

Sr. No	Goods Description	Size	Quantity Comments
1 
2 
3 
4 
Total:
 
Received By:	………………………………..	Checked By:	…………………………………

An image representation of the format is shown below: