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Receiving Goods and Services: Inspection, GRN, and Proof of Delivery

Capítulo 6

Estimated reading time: 9 minutes

Why receiving matters: ordered vs. received

Receiving is the control point where the organization verifies that what arrives (goods or services) matches what was ordered and is acceptable for use and payment. A correct receipt record protects against overpayment, supports inventory accuracy, and creates evidence for claims (damage, shortage) and for supplier performance tracking.

Two ideas guide every receipt:

Match to the order reference: confirm the delivery belongs to a specific PO line (item/service, unit of measure, agreed quantity, and any special requirements).
Accept only what you can verify: if you cannot count/inspect or confirm completion, record the receipt as partial, conditional, or rejected per your procedure.

Roles and responsibilities at receiving

Receiving / warehouse / logistics

Verifies delivery paperwork against the PO reference (or delivery appointment).
Counts, inspects, and records the receipt (GRN or system receipt).
Labels, stores, and updates stock locations (if applicable).
Quarantines damaged/suspect items and documents discrepancies.

End users / requesters (especially for services)

Confirm that a service was performed as specified (scope, dates, deliverables, quality).
Approve service entry sheets or completion sign-off.
Report issues promptly (incomplete work, rework required, missing deliverables).

Purchasing

Ensures receiving has the correct PO details and any special instructions (inspection requirements, serial tracking, acceptance criteria).
Coordinates with the supplier on discrepancies, returns, replacements, and credit notes.
Updates order status for partial deliveries and manages backorders.

Step-by-step: receiving goods

1) Delivery verification at the dock

Identify the shipment: supplier name, delivery note number, carrier, and PO reference.
Check packaging integrity: visible damage, tamper evidence, wet cartons, broken seals.
Confirm delivery details: delivery address, unloading point, and any temperature/handling requirements.

Practical tip: If the driver asks for a signature, sign only after noting exceptions (e.g., “2 cartons crushed,” “1 pallet missing,” “received subject to inspection”). If your process requires, take photos before moving goods.

2) Count and inspection

Count using the correct unit of measure (each, box, kg, meter). Avoid mixing “boxes” and “each” unless the PO specifies pack size.
Inspect for the level required: visual inspection, functional test, quality check, expiry date, batch/lot, serial numbers, or compliance documents (e.g., certificate of conformity).
Segregate items that are damaged, wrong, or suspect into a quarantine/hold area.

Sampling vs. 100% inspection: Some items (critical spares, regulated products, high-value electronics) may require full checks; others may allow sampling. Follow your internal quality/receiving rules.

3) Record the receipt (GRN / system receipt)

A Goods Receipt Note (GRN) or system receipt is the formal record that goods were received. It should be created promptly after counting/inspection to keep inventory and financial records accurate.

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Record what you actually received, not what the supplier says they shipped.
Reference the PO line so the receipt ties to the correct item, price, and remaining balance.
Capture condition and exceptions (accepted, rejected, accepted with notes).

4) Handle partial deliveries

Partial delivery means the supplier delivers less than the ordered quantity (or delivers in multiple shipments). The key is to record the receipt quantity accurately and leave the PO line open for the remaining quantity.

Post a partial GRN for the quantity received and accepted.
Record backorder quantity (remaining open quantity) and expected delivery date if known.
Communicate the variance to purchasing (and to the requester if it affects operations).

5) Document discrepancies (damage, shortage, wrong item)

Discrepancies should be documented immediately and consistently, because timing and evidence matter for supplier claims and carrier liability.

Shortage: fewer units received than the delivery note or PO indicates.
Over-delivery: more units received than ordered (do not automatically accept; follow policy).
Wrong item: incorrect SKU/part number, wrong specification, wrong size/color, wrong model.
Damage: visible or concealed damage; note packaging condition and take photos.

Common documents used:

Discrepancy report (internal): what happened, evidence, immediate action, who was notified.
Nonconformance report (NCR) or quality hold note: for quality-related issues.
Return to vendor (RTV) or return authorization reference: if goods are to be returned.
Carrier damage report: if damage likely occurred in transit.

Step-by-step: receiving services

Services are “received” when the work is completed (or a milestone is achieved) and accepted by the end user. Because there is no physical count, the acceptance evidence must be clear.

1) Verify service scope and reference

Confirm the service relates to the correct PO reference (service line, dates, location, and deliverables).
Check any prerequisites: timesheets, work orders, site access logs, or deliverable documents.

2) Confirm completion or milestone achievement

End user verifies the work performed against acceptance criteria (e.g., “installed and tested,” “training delivered,” “report submitted”).
Record quantities in service terms (hours, days, milestones, percentage complete) as defined on the PO.

3) Create a service entry sheet / completion sign-off

A service entry sheet (or completion certificate) is the service equivalent of a GRN. It should include who accepted the service and what was accepted.

For milestone-based services, record milestone name, completion date, and acceptance notes.
For time-and-material services, record approved hours/days and attach supporting evidence (timesheets) if required.

4) Handle partial service completion

Record only the completed and accepted portion (e.g., 60% milestone, 3 of 5 site visits, 24 of 40 hours).
Document what remains and any blockers or rework required.
Notify purchasing if the supplier’s schedule or scope is deviating from the order.

What must be captured on receiving documents

Whether you use paper forms or an ERP, the receipt record should be complete enough to support internal controls, supplier claims, and invoice processing.

Data element	Why it matters	Example
Date and time of receipt	Establishes when custody transferred; supports claims and lead-time tracking	2026-01-18 10:42
Receiver ID and location	Accountability and audit trail	Receiver: J. Patel, Dock 2
Supplier and delivery note reference	Traceability to shipment documents	Supplier: ABC Industrial; DN: 458921
PO number and line reference	Links receipt to ordered item/service and remaining balance	PO 100245, Line 003
Item/service description and code	Prevents misposting to wrong line	SKU: BRG-6205; “Bearing 6205-2RS”
Unit of measure	Ensures correct quantity interpretation	EA (each)
Quantity received and accepted	Drives inventory and payment eligibility	Received 80 EA; Accepted 78 EA
Quantity rejected / on hold	Separates usable vs. non-usable stock	Rejected 2 EA (damaged)
Condition / inspection result	Evidence for claims and quality control	Packaging crushed; photos attached
Batch/lot/serial (if applicable)	Traceability, warranty, recalls	Lot L2409; Serials recorded
Discrepancy notes and attachments	Supports supplier/carrier resolution	Short 20 EA; driver signed exception
Storage/bin location (if applicable)	Operational control for picking and stock counts	Aisle 4, Bin B-17

Examples of receiving documents

Example A: Goods Receipt Note (GRN) (goods)

GOODS RECEIPT NOTE (GRN)  GRN No: GRN-009874  Date/Time: 2026-01-18 10:42  Location: Main Warehouse Dock 2  Supplier: ABC Industrial  Delivery Note: DN-458921  Carrier: FastFreight  PO Reference: PO-100245  Receiver: J. Patel (ID: RP113)  Item Line: 003  Item Code/Desc: BRG-6205 / Bearing 6205-2RS  UoM: EA  Ordered Qty: 100  Qty Received: 80  Qty Accepted: 78  Qty Rejected/Hold: 2 (damaged)  Inspection: Visual + packaging check; 2 units dented, photos attached  Exceptions Noted on POD: YES (short + damage)  Remarks: Backorder expected; supplier to confirm ETA for remaining 20 EA  Attachments: Photos_20260118.zip

Example B: Proof of Delivery (POD) exception note (goods)

POD / DELIVERY CONFIRMATION  Supplier: ABC Industrial  Delivery Note: DN-458921  Date/Time: 2026-01-18 10:30  Received By: J. Patel  Condition/Exceptions:  - Received 8 cartons (expected 10)  - 1 carton crushed; contents to be inspected  Signature: ____________________

Example C: Service Entry Sheet (services)

SERVICE ENTRY SHEET  SES No: SES-002311  Date: 2026-01-18  Supplier: Delta HVAC Services  PO Reference: PO-100310  Service Line: 002  Service Description: Preventive maintenance - HVAC units (Site A)  Period: 2026-01-10 to 2026-01-17  Acceptance Basis: Milestone completion + checklist  Quantity/Measure: 3 of 5 units serviced (partial)  Work Evidence: Checklist attached + photos of completed units  End User Acceptance: M. Rivera (Facilities) ID: EU204  Acceptance Notes: Units 1-3 completed and tested OK; Units 4-5 pending parts  Next Step: Supplier to return by 2026-01-25 to complete remaining units

How to communicate variances (what to say and to whom)

When there is a variance, communicate quickly with clear facts. Use the same references across all messages: PO number, delivery note, GRN/SES number, and the exact variance.

To purchasing: “PO 100245 Line 003 received 80 EA, accepted 78 EA, 2 EA damaged, 20 EA short. GRN-009874 created. Photos attached. Please request replacement/credit and confirm ETA for balance.”
To the supplier (often via purchasing): include delivery note number, discrepancy details, and requested action (replace, ship missing, issue credit note, arrange pickup).
To the requester/operations: impact statement (e.g., “Only 78 usable units available; remaining 22 pending. Expected completion date needed.”).

Scenario exercise: partial receipt and variance handling

Situation: Your warehouse receives a delivery for PO-200778, Line 001: “Nitrile Gloves, Size M,” ordered quantity 50 cartons (1,000 gloves per carton). The supplier delivery note DN-77102 states 50 cartons shipped.

At receiving:

You count 45 cartons on the pallet.
2 cartons are crushed and appear contaminated (powder and debris inside the carton flap).
The remaining cartons look intact.

Learner decision: how do you record the receipt?

Choose the best receipt posting based on what you can verify and accept:

Option 1 (incorrect): GRN for 50 cartons because the delivery note says 50.
Option 2: GRN for 45 cartons received, with 43 accepted and 2 on hold/rejected due to damage.
Option 3: Reject the entire shipment and record zero received.

A warehouse counts 45 cartons delivered against an order for 50, and finds 2 cartons crushed/possibly contaminated. What is the best way to record the receipt?

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Receipts should reflect what was physically received and what is acceptable. Record 45 received, accept only 43, and place 2 damaged cartons on hold/reject. Document the shortage and note exceptions for claims and follow-up.