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Unit 12: Warehouse Management

Notes
Figure 12.8: Manual GNR

The goods received note is a temporary document to ensure that the financial stock and physical
products in stock are accurate from the moment when the products are received until the moment
the purchase invoice is issued. It will:
 Debit the stock asset account with the quantity and cost of the products net of VAT

 Credit pending goods received notes account for the net amount on the goods received
note
Even though the goods received note contains VAT amounts, no VAT postings are made. It is not
permitted to deduct VAT until a proper VAT invoice is received from the supplier. The function
of the pending goods received notes account is to capture the liability incurred by the receipt of
the products.

Supplier Payment

When the materials are accepted by the quality control department, one copy of the GRN is sent
to stores for recording in the bin card, while the first copy is sent to accounts department as a
record of acceptance of materials ordered and supplied by the vendor. Once this has happened
and you have an invoice, it is time to complete a GRN. The GRN copy is matched with the
invoice, for payment. After it is checked and priced out by accounts department with reference
to purchase order, it is cleared for issue of pay order.

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