How to raise a purchase order and receive goods with a GRN

Step 1: Raise the purchase order

1. Choose the supplier.
2. Add the items, quantities and agreed rates.
3. Enter the delivery date and payment terms.
4. Save and send the purchase order to the supplier.

Step 2: Receive the goods

When the delivery arrives, create a goods receipt note from the purchase order. Enter the quantity actually received. If it is less than ordered, the order stays open for the balance.

Step 3: Check the supplier bill

Compare the bill with the order and the receipt. This is three-way matching. Pay only for what was ordered, received and billed at the right price.

Step 4: Handle returns

If goods are rejected, record a purchase return so stock and the payable are corrected.

Tips

• Receive in the same location where the goods are stored, so stock is correct from day one.
• Keep vendor rates up to date so the order picks the right price.