The document discusses the goods receipt note (GRN) process. It explains that after receiving an order, the requestor verifies that the delivery, quality, and quantity match the purchase order. If satisfied, the requestor creates a GRN to acknowledge receipt. The GRN provides evidence of receipt but not pricing details. The accounts payable department uses the GRN to match and process vendor invoices for payment. Creating timely GRNs is important for facilitating timely supplier payments and managing aged creditors.

1. GOODS RECEIVED NOTE

2. 2
PROCURE TO PAY CYCLE
Request for procure
Vendor selection
Raising order
Receiving of Goods
Receiving of invoice
Payment

3. 3
RECEIVING OF GOODS
 After receiving the order, the purchases will be sent by the vendor to the to address
stated on the purchase order. The purchase is received by the requestor. The requestor
will check the purchase to ensure:
• Delivery is according to the purchase order
• Quality of purchase is in line as per expectation
• Quantity is as per the purchase order
 If the purchase is defective, it will be sent back to the supplier

4. 4
GOODS RECEIPT NOTE (GRN)
 The requestor after verifying the purchase will acknowledge the receipt of goods by
creating a document called the Goods Received Note
 This document gives evidence that the purchase has been received from the vendor
and the requestor is satisfied with the delivery of purchase
 The GRN contains no reference of the pricing details this is because the pricing details
contain in supplier’s invoice
 Accounts payable department refers the GRN while processing the vendor’s invoice for
payment

5. 5
GOODS RECEIVING AND RECORDING
Process Flow Map
Goods Receipt Note
Inventory Ledger
Quality CheckBin Card
Warehouse

6. 6
IMPORTANCE OF GRN
 An invoice received from vendor cannot be paid without GRN of the purchase order
(three way match)
 GRN confirms the approval of invoice to accounts payable to make the payment
 Timely GRN facilitates timely payment of invoices to suppliers
 If not performed, It increases the out standing invoices and impacts aged creditors