Lesson 24 of 48 – Receipt Note (Goods Receipt Note)
48%
📥 Receipt Note (GRN) in Tally Prime
A Receipt Note, also called a Goods Receipt Note (GRN), is an inventory voucher used when goods are received from a supplier before recording the Purchase Voucher.
Lesson Objective
Learn how to create Receipt Notes, receive goods, inspect inventory, manage tracking numbers and convert Receipt Notes into Purchase Vouchers.
1. What is a Receipt Note?
A Receipt Note records the receipt of goods from a supplier and confirms that the goods have reached the warehouse.
Contains
Example
Supplier Name
ABC Traders
Stock Items
Desktop Computer
Quantity Received
20 Units
Receipt Date
30 July 2026
Tracking Number
GRN-1001
Warehouse
Main Godown
2. Why is Receipt Note Important?
Records receipt of goods.
Updates inventory movement.
Confirms supplier delivery.
Supports warehouse management.
Helps inspect received goods.
Tracks pending purchase invoices.
Reduces receiving errors.
Improves stock control.
Receipt Notes are generally created before Purchase Vouchers when goods arrive before the supplier invoice.
3. Features of Receipt Note
Feature
Benefit
Goods Receipt Tracking
Records incoming stock.
Warehouse Management
Stores goods in correct Godown.
Tracking Numbers
Links Receipt Note with Purchase Voucher.
Partial Receipt
Receive goods in multiple shipments.
Purchase Voucher Conversion
Create Purchase Voucher directly.
4. Example of Receipt Note
Soopro Computers receives 20 Desktop Computers from XYZ Suppliers.
Item
Quantity
Status
Desktop Computer
20
Received
After verification, the Purchase Voucher can be created from the Receipt Note.
5. Receipt Note Workflow
Create Purchase Order.
Supplier dispatches goods.
Goods arrive at warehouse.
Create Receipt Note.
Inspect quantity and quality.
Create Purchase Voucher.
Make payment to supplier.
Update inventory reports.
Receipt Note records the receipt of goods only. The accounting entry is created later through the Purchase Voucher.
6. How to Enable Receipt Note in Tally Prime
Receipt Note is an optional Inventory Voucher in Tally Prime. Before using it, you need to enable Order Processing and Tracking Numbers.
Steps
Open Tally Prime.
Press F11 (Features).
Select Inventory Features.
Enable Use Tracking Numbers (Delivery/Receipt Notes).
Enable Use Receipt Notes (if applicable).
Press Ctrl + A to Save.
After enabling these options, the Receipt Note voucher becomes available under Inventory Vouchers.
7. Steps to Create a Receipt Note
Open Voucher Entry.
Select Receipt Note.
Select the Supplier Ledger.
Select the Purchase Order (if available).
Select the Stock Item.
Enter the Quantity Received.
Select the Godown (Warehouse).
Enter Tracking Number.
Verify the received quantity and quality.
Press Ctrl + A to Save.
Once the goods are verified, the Receipt Note can be converted into a Purchase Voucher.
8. Receipt Status
Receipt Notes help track the receiving status of ordered goods.
Status
Description
Pending
Goods not yet received.
Partially Received
Only some items have been received.
Fully Received
All ordered goods have arrived.
Cancelled
Receipt cancelled due to order cancellation.
Receipt Status helps monitor supplier performance and pending deliveries.
9. Important Fields in Receipt Note
Field
Description
Receipt Date
Date goods are received.
Tracking Number
Unique GRN Number.
Supplier Ledger
Supplier Name.
Purchase Order Number
Reference Purchase Order.
Stock Item
Received Product.
Quantity
Quantity Received.
Godown
Warehouse receiving goods.
Inspection Status
Quality verification.
Batch / Serial Number
If applicable.
Narration
Additional Remarks.
Accurate Receipt Note details help maintain inventory accuracy and simplify Purchase Voucher creation.
10. Common Mistakes While Creating Receipt Notes
Common Mistake
Correct Practice
Selecting the wrong Supplier.
Verify the Supplier Ledger carefully.
Incorrect Quantity Received.
Match with the supplier's delivery challan.
Wrong Godown Selection.
Select the correct warehouse.
Missing Tracking Number.
Maintain proper GRN references.
Skipping Quality Inspection.
Inspect goods before accepting them.
Ignoring Damaged Goods.
Separate damaged goods and report immediately.
No Narration.
Mention shortages, damages or special remarks.
Saving without verification.
Review the Receipt Note before pressing Ctrl + A.
Incorrect Receipt Notes may result in inventory mismatches, supplier disputes and incorrect Purchase Vouchers.
11. Real Business Case Studies
Let's understand how Receipt Notes (Goods Receipt Notes) are used in different businesses.
Business
Goods Received
Purpose
Retail Shop
Received Grocery Items
Update Stock
Medical Store
Received Medicines
Quality Verification
Computer Institute
Received Desktop Computers
Inventory Entry
Electronics Shop
Received LED TVs
Warehouse Management
Furniture Showroom
Received Office Chairs
Goods Inspection
Manufacturing Company
Received Raw Materials
Production Planning
Receipt Notes provide proof that goods have been received from the supplier and are ready for inspection or storage.
12. Receipt Note vs Purchase Order vs Purchase Voucher
Receipt Note
Purchase Order
Purchase Voucher
Goods are Received
Goods are Ordered
Purchase is Recorded
Inventory Voucher
Order Document
Accounting Voucher
Before Purchase Voucher
Before Goods Receipt
After Goods Receipt
Updates Stock Movement
No Inventory Movement
Creates Accounting Entry
Can be converted into Purchase Voucher
Can be converted into Receipt Note
Final Purchase Entry
Easy Trick
📋 Order Goods → Purchase Order
📥 Receive Goods → Receipt Note (GRN)
🧾 Record Purchase → Purchase Voucher
13. Professional Tips & Warehouse Management
Always verify goods against the Purchase Order.
Count every item before accepting delivery.
Inspect quality before storing goods.
Record damaged or missing items immediately.
Assign goods to the correct Godown.
Maintain proper GRN (Tracking Number).
Keep supplier delivery challans safely.
Convert Receipt Notes into Purchase Vouchers promptly.
Review pending Receipt Notes regularly.
Maintain proper warehouse records for audits.
Large companies use Goods Receipt Notes (GRN) to ensure that only verified goods are accepted into inventory.
14. Practical Exercise & Interview Questions
Practical Exercise
Create a Receipt Note for Desktop Computers.
Create a Receipt Note using an existing Purchase Order.
Receive goods into the Main Godown.
Enter a Tracking Number (GRN).
Record a Partial Receipt.
Inspect goods and note damaged items.
Convert the Receipt Note into a Purchase Voucher.
View the Pending Receipt Note Report.
Interview Questions
What is a Receipt Note (GRN)?
Why is a Receipt Note used?
Does a Receipt Note create an accounting entry?
When should a Receipt Note be created?
Difference between Receipt Note and Purchase Voucher?
Difference between Receipt Note and Purchase Order?
Can a Receipt Note be modified?
Can partial receipts be recorded?
What is a Tracking Number?
Why is the Godown selected?
Why is quality inspection important?
Can one Receipt Note contain multiple items?
How do you convert a Receipt Note into a Purchase Voucher?
What is a Goods Receipt Note (GRN)?
How does a Receipt Note help inventory management?
Can a Receipt Note be cancelled?
Which reports are updated after a Receipt Note?
How are pending receipts tracked?
What precautions should be taken before accepting goods?
Why are Receipt Notes important in business?
15. Lesson Summary
Learned the purpose of Receipt Notes.
Recorded receipt of goods from suppliers.
Managed warehouse inventory.
Verified quantity and quality of goods.
Used Tracking Numbers (GRN).
Converted Receipt Notes into Purchase Vouchers.
Compared Receipt Note, Purchase Order and Purchase Voucher.
Learned professional warehouse management.
Completed practical exercises.
Prepared for accounting interviews.
Congratulations!
You can now confidently create and manage Receipt Notes (Goods Receipt Notes - GRN) in Tally Prime for receiving goods, warehouse management and inventory control.