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Free tool · Purchase and dispatch

GRN Generator

Make a goods receipt note against a purchase order, with ordered, received, accepted and rejected quantities

  • Free
  • No signup
  • Indian rules
Received at

Goods Receipt Note

GRN No.

Purchase department copy

Supplier
GRN datePO no.PO dateInvoice / DC no.Invoice dateVehicle / LR no.Gate entry no.
Item 1
Rejected–
Inspection remarks

Received by

Inspected by

Store in-charge

Approved by

Only the accepted quantity is taken into stock and passed for payment. Rejected goods are returned to the supplier with a material returned note or debit note.

Receipt check

Add the items received to check them against the purchase order.

Before you pass the bill

  1. Match three documents: the purchase order (agreed rate and quantity), this GRN (quantity accepted) and the supplier's invoice.
  2. Pay for the accepted quantity at the PO rate. Short and rejected quantities should not be paid for.
  3. GST: section 16(2)(b) of the CGST Act allows input tax credit only once the goods are received. If one invoice arrives in lots, credit is taken when the last lot is received, so keep each GRN with the invoice.

How it works

What this tool does.

Create a Goods Receipt Note (GRN) for goods received against a purchase order. Record ordered, received and accepted quantities, see rejections and short supply worked out for you, add reasons, sign-offs and values, and download it as a PDF in four copies.

Fill in the GRN on the page as you would on paper. Add your business details, the supplier, the GRN date, the purchase order number and the supplier’s invoice or delivery challan number. For each item, enter the quantity ordered on the PO, the quantity that arrived and the quantity that passed inspection. Accepted starts equal to received; lower it for anything you reject, and the rejected quantity is worked out as received minus accepted. Add a reason for each rejection. Turn on rate and value to show the value of the accepted quantity. Below the document, a receipt check lists short supplies, extra quantities and rejections, with what to do next. Download PDF prints the four copies ICAI describes: purchase, stores, receiving and accounts. Your business details and usual signatories are saved in your browser only.

Rules and dates last reviewed: October 2026

Official sources

GRN Generator formula

Rejected quantity = received quantity − accepted quantity. Short supply = quantity ordered − quantity received (when less was received). Excess supply = quantity received − quantity ordered (when more was received). Value accepted = accepted quantity × rate. Only the accepted quantity goes into stock and is passed for payment.

Worked example

A pump maker in Coimbatore orders 500 impeller castings at ₹450 and 200 motor housings at ₹1,250 from a foundry in Rajkot. The lorry brings 480 impellers and 200 housings. Inspection finds blowholes in 12 impellers and a cracked flange on 5 housings. The foundry’s invoice bills everything that was sent.

  1. Impellers: short supply = 500 − 480 = 20. Accepted 468, so rejected = 480 − 468 = 12 (blowholes)
  2. Housings: received 200, the full PO quantity. Accepted 195, so rejected = 200 − 195 = 5 (cracked flange)
  3. Value accepted = 468 × ₹450 + 195 × ₹1,250 = ₹2,10,600 + ₹2,43,750 = ₹4,54,350
  4. Invoice value before GST = 480 × ₹450 + 200 × ₹1,250 = ₹2,16,000 + ₹2,50,000 = ₹4,66,000
  5. Value of rejected goods = 12 × ₹450 + 5 × ₹1,250 = ₹5,400 + ₹6,250 = ₹11,650

The GRN takes 468 impellers and 195 housings into stock. The 17 rejected pieces go back with a material returned note, with a debit note for ₹11,650 against the invoice, so ₹4,54,350 plus GST is passed for payment. The PO stays open for the 20 impellers not yet supplied.

Sleet ERP

Want this done on every order?

Sleet ERP records each goods receipt against its purchase order, with batches, expiry dates and serial numbers, and holds QC items until they pass.

  • Orders that matchPurchase orders are matched to the goods received and the supplier’s bill.
  • Dispatch with papersDelivery challans and e-way bills for stock moving between godowns and branches.
  • Labels from your itemsBarcodes print from the item master and are scanned at billing and stock counts.
See how it works
A warehouse worker scanning barcodes on stacked cartons

Questions

GRN Generator, answered.

Something else? Message us on WhatsApp at +91 82001 72869 or write to sales@getsleet.cloud.

What is a GRN (goods receipt note)?

A GRN is the document the stores or receiving team makes when goods arrive from a supplier and pass inspection. ICAI study material also calls it a receiving report or material inward note. It records what was received and accepted against the purchase order, and accounts use it to check the supplier’s invoice before paying.

What details should a GRN have?

At least the GRN number and date, the supplier, the purchase order number, the supplier’s invoice or challan number, and for each item the quantity ordered, received, accepted and rejected, with the reason for any rejection. Most businesses add the vehicle or LR number, a gate entry number and signatures of the person who received the goods, the inspector and the store in-charge.

How many copies of a GRN are made?

ICAI study material says a GRN is generally prepared in quadruplicate: one copy each for the purchase department, the stores or indenting department, the receiving department and the accounts department. This generator prints all four, each labelled, or just the one you choose.

What happens to rejected goods?

Rejected goods are not taken into stock. They go back to the supplier with a material returned note. If the supplier has already billed for them, raise a debit note, or ask the supplier for a credit note, so you pay only for what you accepted.

What is three-way matching?

Before a bill is paid, accounts compare three documents: the purchase order (what you agreed to buy and at what rate), the GRN (what you actually received and accepted) and the supplier’s invoice (what you are being charged). ICAI study material describes checking the invoice quantity against the GRN and the price against the purchase order.

Does a GRN matter for GST input tax credit?

Yes. Section 16(2)(b) of the CGST Act allows input tax credit only once you have received the goods. If the goods on one invoice come in lots, credit is taken when the last lot arrives. A dated GRN for each lot is your proof of when the goods were received.

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