What is a Goods Receipt? What does it do? What purpose does it serve in your business?
Published 27 May 2022
A goods receipt is an important document in any business that deals with the buying and selling of goods. A goods receipt is used to record and track the movement of goods into a warehouse from one vendor to another.
It also helps to ensure that all items being traded are accounted for. A goods receipt can also be used as a basis for settling any disputes that may arise over transactions.
A goods receipt can be issued by the buyer or the seller of the goods. The receiving party typically signs the document to confirm that they have received the goods.
Though both may seem similar as they are documents that show a transaction between two parties, there is a key difference between a goods receipt and an invoice.
A goods receipt is the document that proves the buyer has received the items they ordered, while an invoice is a document that shows how much money is owed for those items.
Now that we have a clearer meaning of goods receipt, let’s look at what goods receipt means specifically in accounts payable.
A goods receipt is a document associated with accounts payable wherein the supplier of goods provides evidence that the goods have been received by the purchaser so that the payment can then be made to the supplier.
The document may also include information such as the quantity, description, and price of the goods. The document typically contains information such as the supplier’s name, contact information, product description, quantity, and cost.
Usually created by the retail store’s department, a goods receipt note is a document that evidences the receipt of goods by a business. The GRN will typically list the details of the goods received, including the quantity and description of the items.
The GRN may also include information about where the goods came from and when they were received.
GRN is commonly used in the following situations:
A goods receipt is an essential document in any business because it proves that the business has received the goods that it ordered. This document can be used to track the movement of inventory and to ensure that the correct items were received.
Below are the 5 steps in the goods receipt process:
The first step in the goods receipt process is to identify the goods that have been received. This can be done by comparing the packing list or purchase order against the actual items that have been delivered. Once the items have been identified, they should be verified against the shipping invoice to ensure that they are all accounted for.
The second step is to verify the quantity and condition of the goods that have been received. This can be done by inspecting them for any damages or shortages. If there are any damages or shortages, a notation needs to be made on the shipping invoice and a claim needs to be filed with the carrier.
The third step is to unload and place the goods in storage. This can be done by placing them in the designated area within the warehouse or onto specific shelves or racks. Once they have been placed in storage, it is important to keep track of where they are located so they can easily be retrieved when needed.
The fourth step is to record the goods received. This can be done by creating a physical or computer-based inventory list. Once the goods have been recorded, it is important to keep this list up to date so that it accurately reflects the current inventory levels.
The fifth and final step is to notify purchasing of the goods received. This can be done by sending them an email or placing a purchase order in their mailbox. Once they are aware of the new inventory, they can begin the process of ordering more items to replenish inventory levels.
iAuditor by SafetyCulture is a mobile app that helps businesses streamline their goods receipt process. It allows users to easily take photos or videos of the items they are receiving, as well as capture any relevant information and record them in secure cloud storage, ready for future use.
iAuditor makes it easy for businesses to keep track of what they have received and ensure that everything is accounted for. Additionally, iAuditor can generate reports on the goods receipt process, providing managers with insights into areas where improvements can be made.
There are a number of reasons why iAuditor can provide an efficient goods receipt process:
Shella Marie Ang
Shella Marie Ang is a content contributor for SafetyCulture. Cultivating her experience in social media marketing, virtual assistance, and SEO has helped her create compelling content for websites and blogs. Her medical background also has given her an edge when it comes to writing medical and health-related content. She loves reading in her free time and being around other creatives.
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