What is a Goods Received Note (GRN)?

A goods received note (GRN) is a document that records the delivery of goods from a supplier, confirming what arrived, in what quantity and in what condition. It is the evidence that goods have been received and forms the basis for three-way matching when approving supplier invoices for payment. In Microsoft Dynamics 365 Business Central, posting a purchase receipt generates the GRN record automatically, updates the item ledger with the received quantities and creates the liability entry in accounts payable.

How GRNs work in Business Central

When goods arrive from a supplier, the warehouse team posts a purchase receipt in Business Central against the relevant purchase order. Business Central records the received quantity, updates stock, and creates a posted purchase receipt document that serves as the GRN. When the supplier invoice arrives, Business Central matches it automatically to the purchase order and the posted receipt. If quantities or prices differ, the system flags the discrepancy before the invoice can be posted for payment, preventing erroneous payments reaching the payment run.

GRNs in practice

A distribution warehouse receives a delivery from a supplier. The goods-in team scans the delivery against the open purchase order in Business Central, posting a receipt for the actual quantities and flagging two items as short-delivered.
A finance team uses the three-way matching report in Business Central to confirm that all supplier invoices in the payment run have a corresponding purchase order and GRN before approving the BACS file.
A purchasing manager investigates a supplier's pattern of short deliveries by reviewing posted purchase receipts in Business Central, using this data in a supplier performance review.
A stock controller uses the GRN history in Business Central to confirm that a specific batch of goods was received and inspected before a quality dispute with a customer arises.

How Advantage configures GRN processing in Business Central

Advantage configures purchase receipt workflows, approval rules and three-way matching settings in Business Central during implementation. For clients with high delivery volumes, we integrate barcode scanning at the goods-in point so that receipts are posted directly from the warehouse floor without manual data entry at a desk.

See how Business Central manages your purchasing process →

Frequently Asked Questions

Common questions about goods received notes and Business Central purchasing workflows.

What information does a GRN contain?

A GRN typically records the supplier name, purchase order reference, delivery date, item descriptions, quantities received and any discrepancies between what was ordered and what arrived. In Business Central, posting a purchase receipt generates the GRN record and updates the item ledger and open purchase order simultaneously.

What is three-way matching in relation to a GRN?

Three-way matching is the process of comparing a supplier invoice against the original purchase order and the goods received note before approving payment. All three documents must agree on quantity and price. Business Central performs this matching automatically when a vendor invoice is posted against the corresponding purchase receipt.

What happens if there is a discrepancy on a GRN?

If quantities received differ from quantities ordered, Business Central records the actual received quantity on the receipt and leaves the outstanding quantity as open on the purchase order. The purchase order remains open until the shortfall is delivered or the order is manually closed. Discrepancies can be flagged for credit or supplier dispute through the vendor ledger.