Procurement Glossary
Goods receipt document (GRN): definition, meaning and application in Procurement
November 19, 2025
The Goods Receipt Note (GRN) is a central document in the procurement process that confirms the proper receipt of goods. It serves as proof of delivery and forms the basis for invoice verification and payment approval. Find out below what a goods receipt note is, which methods are used and how you can minimize risks.
Key Facts
- Documents the physical receipt of goods and their conformity with the order
- Forms the basis for the three-way reconciliation between order, delivery bill and invoice
- Enables automatic invoice approval in the event of a complete match
- Reduces payment errors and improves supplier evaluation
- Supports inventory management and quality control in incoming goods
Contents
Definition: Goods receipt document (GRN)
A goods receipt document systematically documents the receipt of goods and confirms their conformity with the original order.
Essential components of the goods receipt document
The goods receipt document contains all relevant information about the delivered goods:
- Order number and supplier data
- Article description, quantity and quality
- Delivery date and date of receipt
- Test notes and deviations
Goods receipt document vs. delivery bill
While the delivery bill is created by the supplier, the recipient generates the goods receipt document as an internal confirmation. This separation ensures an independent document check and increases the control density in the incoming goods department.
Importance in the purchasing process
The goods receipt document acts as an interface between the physical receipt of goods and commercial processing. It enables seamless integration into order processing and supports efficient invoice verification.
Methods and procedures
Goods receipt documents are created and managed using structured processes and modern technologies.
Manual goods receipt posting
With the manual method, employees check the delivered goods against the order and create the document manually. This procedure is suitable for complex goods or special deliveries that require individual evaluation.
Automated GRN generation
Modern ERP systems create goods receipt documents automatically based on barcode scans or RFID technology. Integration with the delivery call-off enables seamless processing without manual intervention.
Quality inspection and release
Critical goods undergo an extended inspection prior to GRN creation. Quality parameters are documented and deviations are systematically recorded to support supplier evaluation.
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Important KPIs for goods receipt documents (GRN)
GRN performance indicators enable the continuous optimization of incoming goods processes and their efficiency.
GRN processing time
The average time between goods receipt and GRN creation shows the process efficiency. Target values are typically less than 24 hours for standard goods. These key purchasing figures support continuous improvement.
Accuracy rate of goods receipt documents
The proportion of error-free GRNs in relation to the total number measures the quality of the incoming goods processes. A rate of over 95% is considered a benchmark for well-organized companies and reduces downstream corrections.
Degree of automation
The percentage of automatically created GRNs shows the progress of digitization. High automation rates of over 80% reduce costs and significantly minimize human errors in document processing.
Risk factors and controls for goods receipt documents (GRN)
Incorrect or incomplete goods receipt documents can lead to considerable financial and operational problems.
Quantity and quality deviations
Undetected differences between ordered and delivered goods lead to stock inaccuracies and incorrect payments. Systematic controls and spot checks minimize these risks through structured incoming goods with QA inspection.
Time delays in document entry
Late GRN creation blocks invoice processing and can lead to cash discount deduction losses. Defined time windows and automated reminders ensure prompt processing as part of the process organization.
Double bookings and system errors
Multiple entries of the same delivery or system failures can lead to incorrect stocks. Unique reference numbers and regular system reconciliations prevent such problems and support reliable inventory management.
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Practical example
An automotive supplier implements a digital GRN system for its production deliveries. When goods are received, employees scan the delivery with mobile devices, the system automatically compares it with the order and creates the goods receipt document. In the event of discrepancies, the purchasing department is notified immediately.
- Reduction in processing time from 4 hours to 15 minutes
- Reduction of the error rate by 85% through automatic checks
- Improving supplier evaluation through precise data collection
Current developments and effects
Digitalization is fundamentally changing incoming goods processes and creating new opportunities for efficiency and transparency.
AI-supported incoming goods inspection
Artificial intelligence automatically analyzes deliveries and detects deviations from the order. Machine learning algorithms learn from historical data and continuously improve the accuracy of automatic GRN generation.
Blockchain-based tracking
Blockchain technology enables seamless documentation of the supply chain. Incoming goods receipts are stored unalterably and create trust between all parties involved in direct delivery.
Mobile incoming goods solutions
Tablet and smartphone-based applications enable GRN creation directly at the goods-in gate. This mobility reduces media disruptions and significantly speeds up the entire handling process.
Conclusion
The goods receipt document is an indispensable tool for controlling and documenting deliveries in modern Procurement. Systematic GRN processes can reduce errors, cut costs and improve supplier relationships. Increasing digitalization and AI integration open up new opportunities for efficiency gains and more precise controls. Companies should regularly review their incoming goods processes and adapt them to the latest technologies.
FAQ
What is the difference between GRN and delivery bill?
The delivery bill is created by the supplier and accompanies the goods, while the goods receipt note (GRN) is generated by the recipient after the delivery has been checked. The GRN confirms the quantity and quality actually received, regardless of the supplier's details.
When must a goods receipt document be created?
A GRN should be created immediately after the physical receipt and inspection of the goods. In the case of critical goods or quality checks, the GRN can be created after all tests have been completed, but within 24 hours of delivery at the latest.
What information must a GRN contain?
Essential information includes the order number, supplier data, article description, quantity delivered, date of receipt, inspection result and any discrepancies. This data enables subsequent invoice verification and inventory management without additional research.
How does the GRN support the audit?
The goods receipt document together with the purchase order and invoice form the three-way reconciliation. If all documents match, the invoice can be released automatically. Any discrepancies are systematically recorded and forwarded to Procurement for clarification.
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