By Safock Procurement Research Team8 min read
A delivery arrives at the downtown restaurant against PO DTN-0001: six lines, $1,553.90 ordered. One case of chicken is at 46°F. One case of olive oil is missing. A bag of flour is torn open. The gloves are a different brand.
If the receiver signs the driver's delivery note and goes back to prep, the supplier invoices $1,553.90 and it gets paid. If the receiver records what was actually accepted on a goods received note, $271.75 comes back, 17.5% of the delivery.
A goods received note, also called a goods receipt note or receiving report, is the buyer's record of a delivery. It lists each line on the purchase order and records how much arrived, how much was accepted, how much was rejected and why, and who checked it.
It is different from the delivery note (or packing slip) the driver hands over. The delivery note is the supplier's version of what they sent. The GRN is your version of what you received. When a receiver signs the delivery note without checking it, the supplier's version becomes the record.
The GRN is also the third document in the three-way match. Accounts payable compares the invoice with the purchase order (what you agreed to buy) and the GRN (what you accepted). Without a GRN, the invoice can only be checked against the order, which says nothing about whether the goods arrived.
| Field | Why it matters |
|---|---|
| Ordered | Copied from the PO, so shortages are visible |
| Received | What came off the truck, counted |
| Rejected | What you refused: damaged, wrong, failed temperature |
| Accepted | Received minus rejected. This is what the invoice should bill |
| Condition | Good, damaged, refused, substituted or short-dated |
| Arrival temperature | For chilled and frozen goods, taken at the door |
| Lot number and expiry | So a recall or short-dated stock can be traced |
| Note | What happened, in a sentence the supplier can't argue with |
At the top of the note go the PO number, supplier, site, date and time, the supplier's delivery note number, the carrier and driver, and the person receiving. At the bottom go the signatures.
This is the Goods Receiving Note Generator's built-in example: a delivery from a foodservice distributor to a restaurant against PO DTN-0001.
| Item | Ordered | Received | Rejected | Accepted | What happened | Credit owed |
|---|---|---|---|---|---|---|
| Chicken breast 40 lb | 4 CS | 4 | 1 | 3 | One case at 46°F, refused | $118.00 |
| Crushed tomatoes, case of 6 | 4 CS | 4 | 0 | 4 | ||
| Olive oil 3 L, case of 4 | 2 CS | 1 | 0 | 1 | Short shipped, back-ordered | $112.00 |
| Tipo 00 flour 50 lb | 6 BG | 6 | 1 | 5 | One bag torn | $41.75 |
| Salmon fillet 10 lb | 2 CS | 2 | 0 | 2 | Arrived at 36°F | |
| Nitrile gloves L | 2 CS | 2 | 0 | 2 | Brand substituted, same spec | |
| Total | $271.75 |
The order was worth $1,553.90. What was accepted is worth $1,282.15. The credit owed for each line is the ordered quantity minus the accepted quantity, times the PO price: one case of chicken at $118.00, one case of oil at $112.00 and one bag of flour at $41.75.
The gloves carry no credit. A substitute of the same specification was accepted, but the note records it, so the next order can ask for the right brand or the contract can be updated.
The supplier's invoice usually bills what was ordered or shipped. If accounts payable can only match it to the PO, a $1,553.90 invoice for a $1,553.90 order looks perfect and is paid. Matched against an accurate GRN, three lines fail on quantity and $271.75 is held until the supplier sends a credit. Our three-way match guide covers how those quantity checks work, and why matching is only as good as the receipt behind it.
For food businesses, the GRN is also a food safety record. Under the FDA Food Code, adopted with local changes by most US states, refrigerated time/temperature-controlled food must be "at a temperature of 41 degrees F (5 degrees C) or below when received," and "a food that is labeled frozen and shipped frozen by a food processing plant must be received frozen" (Minnesota Rule 4626.0165, adopting Food Code 3-202.11). Food must also show no evidence of earlier temperature abuse, and some items, such as milk and shellfish, follow their own rules.
In the example, the chicken arrived at 46°F and one case was refused at the door. The salmon arrived at 36°F and was accepted. The Goods Receiving Note Generator checks chilled lines against 41°F and flags frozen lines above 0°F as a practical test for "received frozen".
Two habits make temperature records useful:
Check which version of the Food Code your state or local authority has adopted; this is general guidance, not legal advice.
A supplier will usually credit a shortage or a rejection when the evidence is specific and was recorded at the time. Four things make it so:
With those on the note, the credit request writes itself: which lines, how many units, at what price. The tool drafts one from the GRN.
The most common receiving mistake is checking the delivery against the driver's paperwork instead of counting it. If the delivery note says six bags and the receiver counts by ticking the delivery note, a short delivery shows up as complete.
Count what is on the dock, then compare the count with the purchase order. Some businesses go further and practise blind receiving: the receiver records quantities without seeing what was ordered or shipped, and the comparison happens afterwards.
Enter what was ordered, received and rejected, the price, and the arrival temperature. The defaults are the chicken line from the example.
Receive one line · same checks as the full note
1 CS rejected
Arrived at 46°F (limit 41°F)
Free tool
Goods Receiving Note Generator
Load the lines from a saved purchase order, record counts, condition, temperature, lot and expiry on a phone at the door, add photos and both signatures, and download the signed note and a credit request PDF.
Runs in your browser. No sign-up.
A record, made by the buyer when a delivery arrives, of what was received against the purchase order: how much arrived, how much was accepted or rejected and why, and who checked it. It is the receipt in the three-way match that accounts payable uses before paying the invoice.
The delivery note comes from the supplier and lists what they say they sent. The goods received note comes from the buyer and records what actually arrived and was accepted. Signing the delivery note without checking it confirms the supplier’s version.
Under the FDA Food Code, which most US states adopt, refrigerated time/temperature-controlled food must be 41°F (5°C) or below when received, and food shipped frozen must arrive frozen, with exceptions such as milk and shellfish governed by other rules. Check the version your state or local authority has adopted.
Record the quantity that actually arrived, not the quantity ordered, note the shortage on the delivery note, and have the driver sign it. Keep the PO line open for the missing quantity, and ask the supplier for a credit or a follow-up delivery.
The person who checked the delivery, and, when anything was short, rejected or damaged, the driver as well. The driver’s signature on the discrepancies is what makes a credit claim hard for the supplier to dispute.