Differentiate between Goods Received Note (GRN) and Goods Despatch Note (GDN)?

In order to control the activities of the business and have operations running effectively management is responsible to have controls in place. Without controls accountantability will not be possible. One of the ways by which controls can be implemented is by using control documents (sometimes known as source documents as some are used to initiate accounting process so act as a “source”). For examples purchase orders, invoices, cash receipts, goods received note, goods despatch note etc.

Goods Despatch Note (GDN) or Goods Dispatch Note is a document that is raised by the supplier’s despatch department responsible of sending goods out to customers. A copy of the GDN is retained by the despatch department and one copy is sent to accounts department to process invoice to the customer. Without GDN sent to accounts department no invoice can be raised. In other words goods despatch note acts as a source to generate invoice. These notes are usually sequentially numbered that helps identify any missing notes from the record.

Goods Delivery Note: If the same note i.e. goods despatch note is sent with the goods to the customers and customer sign the documents as an evidence of the receipt by the customer then the same note will be named as Goods Delivery Note. So if we are really intended to differentiate between two types of documents then despatch note only authorizes the despatch whereas delivery note serves an additional purpose and acts as an evidence that goods have been delivered to the customer and customer acknowledges the receipt. Business, however, might raise goods delivery note and goods despatch note separately to keep the documents meant for internal and external purposes remain distinct.

Goods Received Note (GRN) is raised by a store manager of the customer (buyer) on receiving goods from supplier. This document is for internal usage. Just like goods delivery/despatch note that are in triplicates, goods received note are also prepared in three or more copies where one is retained by the store department and another is sent to accounts department. Accounts department uses GRN to verify the invoice sent by the supplier. No invoice will be processed by the accounts department for payment purposes unless a GRN is sent by stores manager as GRN evidences the receipt of goods.


  1. Thank you for good information

  2. IM LOST !!! I have tried to do that tracking package BUT for some reason NO ONE can tell me a thing ! ( is that helpful? ) NO IT IS NOT !!! post it agin maybe some one will do somthing to help !

  3. IM LOST !!! I have tried to do that tracking package BUT for some reason NO ONE can tell me a thing ! ( is that helpful? ) NO IT IS NOT !!!

  4. IM LOST !!! I have tried to do that tracking package BUT for some reason NO ONE can tell me a thing ! ( is that helpful? ) NO IT IS NOT !!!

  5. What is difference between store requisition form and good issue note?

  6. It is good example for the documents dealing with receiving and despatches the goods and it important in controlling a stories.

  7. what document is prepared when a service has been rendered?

  8. Hiii…
    What is the Epc grn process …
    Epc grn process please Explain ..

  9. Ok, but hey, who can tell me what SRO is, please

  10. Thank you very much.

  11. You said that GRN is in three copies , one for the store dept. , one for the accounts dept. ,so how about the last one ?

    • Sent to purchase department to notify that purchase order has been processed or any other department that is involved in the purchase/procurement loop.

    • One is for the supplier/seller

  12. How to reconcile stock ledger with bin cards and physical counts ?

  13. Dhahabeni Jumbe Dhahabeni Jumbe

    I want to know the difference between Goods Received Note and Daily Receipt Report

    • GRN has been explained above and I hope you have understood it. Daily receipt reports however may refer to different types of receipts. Like goods receipt, invoice receipt or cash receipt.

  14. Hi,

    I wanted to know if the Goods Dispatch Note is supposed to have the delivery address of the consignment and other related details of the customer.

  15. thats a good post

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