Receiving Inventory on a GRN

Owned by Michael Hanlon
Jun 30, 2023
3 min read

Inventory received is recorded on a Goods Received Note (GRN). GRN’s record the delivery or supply of:

  • inventory and non inventory items ordered on a purchase order

  • inventory and non inventory items not ordered on a purchase order

Goods can also be received for:

  • inventory and non inventory items ordered on a warehouse purchase order

Any stock ordered on a purchase order MUST be recorded as received against that originating ‘committed’ purchase order by linking to PO to the GRN.  Committed means the PO has a status of ‘Sent’.

The easiest way of establishing the link between a PO and a GRN is by opening the PO, then click the Create GRN button on the menu ribbon.

 

Multiple GRNs can be recorded against one purchase order and one GRN can record many purchase orders. A GRN MUST EXIST before a purchase invoice can be raised.

 

As purchase orders are placed and  stock is received against these purchase orders, the system tracks outstanding back order requests and minimum stock levels and calculates stock requirements based on this information.

The calculation for stock requirements is:

 

When stock received is not linked to originating purchase orders, the quantity recorded as undelivered on those purchase orders still forms part of the stock requirement calculation.  This can result in delayed deliveries to customers as the system still includes this undelivered stock in the calculation for re-ordering purposes.

As the receiving slip is saved, the originating purchase order(s) is updated with the receiving slip reference number and date.

 

The creditor record Activities > Processed Orders tab is updated with the delivery details, including outstanding quantities.

Individual inventory records are updated to display details of delivered stock on each purchase order under the Order > On Order tab.

 

Stock can be recorded as received against a creditor without a purchase order and that should ONLY occur where a purchase order has NOT been raised for the goods or services being received or supplied.  In that case, use the Add Non-Ordered Item button in the footer of the GRN.