← muthari.com

What is a GRN in construction, and what should it update?

Muthari glossary · construction terms for specialist contractors

A goods receipt note (GRN) is the record a contractor writes when material physically arrives from a supplier against a purchase order. Per line it states what was ordered, what had already been received, and what is being received now, with the supplier’s delivery note reference and the receiver’s identity. A GRN is not the PO and not the invoice; it is the fact of delivery. Done properly, one GRN should do three things at once: increase stock by exactly the quantity received, reduce the outstanding balance on the PO line, and put the received material in front of QC before anyone can use it. When those three happen in separate places, the store, procurement and quality each hold a different truth.

How Muthari OS records this

For contractors who fabricate what they install, the receipt is where the material trail begins, so Muthari OS treats it as one transaction with three consequences.

Partial deliveries, by arithmetic

Each GRN line shows ordered, previously received and receiving now. Receive 300 of an ordered 500 and the PO shows 200 outstanding without anyone editing it; the PO flips to partially or fully delivered on its own. Over-receipt is refused, not warned about.

Stock and QC, from the same record

Every GRN line mints a stock batch and QC is notified automatically. Only an Approved batch can be issued. QC can approve, or quarantine and split, or return the batch to the supplier with a return-note number and reference — and a supplier return reopens the balance on the PO.

The supplier’s batch number, per line

The supplier’s batch or heat number is recorded on each GRN line at receipt and shown to QC, so the batch on the shelf carries the supplier’s identity as well as the internal receipt reference. The stock item identity travels from PO to receipt to batch.

Honest limits: stock location is the project lane, not a warehouse bin or rack. The supplier’s delivery note number is a typed reference. The incoming QC decision records the inspector and remarks but takes no photos. There is no reorder automation, and Muthari OS is not an ERP — it keeps no inventory valuation ledger. Built by contractors in the trade; the receipt screen speaks storekeeper.

Book a free demo  See the whole system →