Concept Definition
What is a goods receipt note?
A goods receipt note (GRN) is a document confirming that a buyer has received specific goods from a supplier. It records quantities received, condition of goods, and receipt date. In three-way matching, the GRN is the third document checked against the purchase order and supplier invoice.
How is a GRN used in invoice matching?
In three-way matching, the AP team verifies that the invoice amount matches both the purchase order and the goods receipt note. Payment is only authorized when all three documents agree.
- Invoice quantity must match GRN received quantity.
- Invoice price must match PO authorized price.
- Invoice must be for goods or services confirmed as received.
- Discrepancies trigger an exception workflow for resolution.
Frequently Asked Questions
- Is a GRN the same as a delivery note?
- Not exactly. A delivery note is issued by the supplier and accompanies the shipment. A GRN is created by the buyer upon receipt, confirming what was actually received. They may record different quantities if shortages or damage occurred during delivery.
- Does e-invoicing automate GRN matching?
- Yes. E-invoicing platforms with ERP integration can automatically match invoice line items against GRN data from the buyer's warehouse or ERP system, enabling straight-through processing when all three documents agree.