GRN (Goods Receipt Note) Feature

📌 Overview

The GRN (Goods Receipt Note) feature is used to record and verify goods received from suppliers.
It ensures proper stock updates, invoice verification, and purchase control.

GRN works closely with:

  • Inventory
  • GDN (Goods Dispatch Note)
  • Invoice Matching
  • Free Items Handling
  • Shipment-based verification

🔹 1. What is GRN?

GRN (Goods Receipt Note) is a document created when goods are physically received in the warehouse.

It helps to:

  • Update inventory stock
  • Verify supplier delivery
  • Match invoice with received goods
  • Detect shortages or excess items

🔹 2. Enable New Item Entries in Goods Entry

✅ Feature: New Items in Goods Entries

This option allows adding items in GRN that are:

  • Not available in the system
  • Not part of the original invoice
  • Newly introduced products

📌 How to Enable

  1. Go to Settings

  2. Open Inventory Settings

  3. Enable:Allow New Item Entry in Goods Entry

  4. Save changes

🎯 Use Case

  • Supplier sends extra items
  • New SKU introduced
  • Replacement products received

🔹 3. Inventory Integration

When GRN is saved:

  • Stock quantity increases
  • Batch/serial numbers are recorded
  • Warehouse stock is updated
  • Stock ledger entry is created

This ensures real-time inventory accuracy.

🔹 4. GDN (Goods Dispatch Note)

GDN is created when goods are dispatched from supplier or internal warehouse.

Flow:

Purchase Order → GDN → GRN → Invoice

GRN verifies whether:

  • Quantity dispatched = Quantity received
  • Damaged goods are reported
  • Missing goods are identified

🔹 5. Free Items Handling in GRN

Sometimes suppliers provide:

  • Free promotional items
  • Bonus quantities
  • Complimentary stock

In GRN:

  • Mark item as “Free”
  • System records quantity
  • Cost impact handled separately

This ensures:

  • Stock increases
  • But no purchase cost added

🔹 6. Invoice Matching Type

Invoice matching ensures the invoice is validated against PO and GRN.

There are 4 types:

🔹 6.1 2-Way Matching

Matches:

  • Purchase Order
  • Invoice

Used when:

  • No GRN process
  • Direct delivery verification not required

Flow:

PO ↔ Invoice

🔹 6.2 3-Way Matching

Matches:

  • Purchase Order
  • GRN
  • Invoice

This is most commonly used.

System checks:

  • Ordered quantity
  • Received quantity
  • Billed quantity

Flow:

PO ↔ GRN ↔ Invoice

Prevents:

  • Overbilling
  • Quantity mismatch

🔹 6.3 4-Way Matching

Matches:

  • Purchase Order
  • GRN
  • Invoice
  • Inspection / Quality Check

Used in:

  • Manufacturing
  • Quality-controlled industries

Flow:

PO ↔ GRN ↔ Inspection ↔ Invoice

Ensures:

  • Quantity correct
  • Quality approved
  • Invoice accurate

🔹 6.4 Shipment-Based Matching

When shipment tracking is enabled:

  • Shipment document is verified
  • Delivery confirmation required
  • Linked to logistics tracking

Used in:

  • Multi-location warehouses
  • Import/export
  • Third-party logistics

🔹 8. Benefits of GRN Feature

  • Prevents invoice fraud
  • Ensures stock accuracy
  • Controls supplier payments
  • Tracks shipment discrepancies
  • Improves warehouse efficiency

The GRN feature ensures complete control over:

  • Inventory updates
  • Supplier verification
  • Invoice matching
  • Shipment validation

Proper configuration of matching types (2-way, 3-way, 4-way) ensures financial and stock accuracy across the system