In Malaysian procurement, a goods received note (GRN) is an internal document raised by a buyer to confirm that goods have arrived at a store, warehouse, or site, and to record their actual condition and count. While the supplier sends a delivery order (DO) with the shipment to state what was dispatched, the GRN is the buyer's independent record of what was unpacked, verified, and accepted.

For contractors and SMEs across Malaysia, the GRN separates an unverified delivery from a documented receipt. On a busy job site, materials arrive daily on lorries and vans. Without an internal document confirming what was received, a company can end up paying for damaged materials, short shipments, or goods that never arrived.

Site storekeeper in a safety helmet and vest photographing a delivery order on a clipboard, beside pallets of cement bags and steel bars, a tablet showing a goods-receiving screen, and a lorry, site office and tower crane in the background

Who Prepares a Goods Received Note?

The GRN is prepared by whoever physically takes custody of the goods on arrival. On a project site, this is typically the site storekeeper, supervisor, or a designated site receiver. In a central warehouse or workshop, it is handled by the warehouse assistant or inventory clerk.

Having a dedicated receiver prepare the document ensures separation of duties. The person who raises the initial purchase requisition or approves the purchase should not be the sole person confirming delivery. An independent site receiver inspecting the items provides unbiased verification that the supplier fulfilled the purchase order (PO).

What a Goods Received Note Contains

A standard GRN provides the details needed to verify every item against the purchase order. It typically includes:

  • GRN number and date: Unique sequential reference and the date and time goods were received.
  • Supplier information: Vendor name, contact, and delivery vehicle or driver details.
  • Purchase order reference: The purchase order number authorising the purchase, with the project or cost code.
  • Delivery order reference: The supplier's delivery order number accompanying the shipment.
  • Item descriptions and codes: Material descriptions, part numbers, and specifications.
  • Quantities ordered and received: The quantity on the PO, the quantity on the DO, and the actual quantity accepted on site.
  • Condition and rejections: Notes on damaged packaging, defective goods, or rejected materials.
  • Receiver details: Printed name, role, and signature of the person who inspected the delivery.

Handling Partial Deliveries, Shortages, and Damaged Goods

Deliveries to construction sites rarely arrive perfectly every time. Suppliers run low on stock, split deliveries across lorries, or transport goods that get damaged in transit. A clear GRN handles these issues systematically.

When a supplier delivers partially — such as sending 300 bags of cement against a PO for 500 bags — the GRN records the 300 bags accepted. This leaves 200 bags open on the PO so purchasing can track the remainder, while finance pays only for what arrived.

For short deliveries where the DO states 50 boxes but only 45 arrive, the receiver notes the 5-box shortfall on the GRN. Signing the DO without counting makes that shortfall hard to dispute later. Similarly, when materials arrive damaged or off-spec, the receiver notes rejections on the GRN so the supplier can replace them or issue a credit note.

How the GRN Fits Three-Way Matching

The goods received note is the middle document in three-way matching, the verification check finance performs before paying vendor invoices:

  • The purchase order confirms what was ordered and the agreed prices.
  • The goods received note (and DO) confirms what was physically delivered and accepted.
  • The vendor invoice states what the supplier is billing.

Finance compares the three records before payment. If a contractor ordered RM10,000 of timber, but the GRN shows RM2,000 was rejected at the gate, finance holds payment or requires an amended invoice. Without a GRN, accounts payable must rely on unverified DOs, risking overpayment for missing goods.

Common Receiving Problems on Malaysian Sites

Many Malaysian SMEs and contractors face recurring issues with site receiving:

  • No GRN at all: Relying solely on the supplier's DO. The site copy often ends up lost in site cabins, vehicle gloveboxes, or damaged by rain.
  • Blind signing of delivery orders: Site staff under time pressure sign and stamp the DO before unloading, making it almost impossible to dispute shortages later.
  • GRNs written days later: Storekeepers accumulate paper slips and try to write GRNs at month-end from memory, introducing major errors.
  • Copying quantities from the DO: Receivers copy the supplier's figures into the records without physically counting the goods, carrying supplier errors into accounting.

Simple Good Practices for Site Receiving

Establishing consistent receiving routines protects project cash flow without adding heavy paperwork:

  • Count and inspect before signing: Always check quantities and physical condition against the DO and PO before signing. If unloading is delayed, mark the DO as unexamined until counted.
  • Record discrepancies immediately: Note shortages or damage on both the DO and the GRN immediately, supported by photos of damaged goods taken on the spot.
  • Link receiving to the purchase order: File delivery records against their active PO number so the office has instant visibility over open orders and received items.

Managing Site Receiving with Bilaro

Bilaro replaces paper delivery logs with a structured workflow built for Malaysian contractors and site teams. Site staff assigned to a dedicated RECEIVER role record incoming goods on their mobile phones when materials arrive on site.

The receiver records counted quantities against the purchase order and uploads a photo of the supplier's delivery order as proof. Bilaro tracks receipt quantity variances, making partial and short deliveries clear. Finance can then manually match the invoice against the confirmed receipt on an unbroken audit trail.

To see how this works in practice, look at Bilaro's goods received note software page.

What is a goods received note (GRN)?

A goods received note (GRN) is an internal document raised by a buyer to confirm that goods have arrived, record the actual quantities received, and note any damaged or rejected items. It acts as the buyer's formal proof of receipt.

What is the difference between a delivery order and a goods received note?

A delivery order (DO) is issued by the supplier and travels with the goods to show what was dispatched. A goods received note (GRN) is created internally by the buyer to record what was checked, counted, and accepted on site. While a signed DO provides delivery proof for the supplier, the GRN is the buyer's internal record used to verify the vendor invoice.

Who should prepare a goods received note?

The GRN is prepared by the person who physically receives and inspects the goods, such as a site storekeeper, site supervisor, or designated receiver. This provides an independent check separate from the person who approved the purchase order or handles payment.

Why is a goods received note important for three-way matching?

In three-way matching, finance compares the purchase order, the delivery record, and the invoice before paying. The GRN confirms that goods were physically received in good condition, preventing finance from paying for missing or damaged items.

What should you do if delivered goods are damaged or short?

Record the discrepancy on both the delivery order and the GRN immediately. Note the exact quantities missing or damaged, take photographs, and alert purchasing and finance so payment is withheld until the supplier replaces the items or issues a credit note.