Goods received note

What it means

A goods received note is a warehouse document confirming that materials or goods have been taken into stock. It shows the date, supplier, type and quantity of items received, their price and the signature of the person who received them. It is the basis of stock records.

It also matters for accounting. When inventory is accounted for under method A, the increase in stock is recorded on the basis of the note at acquisition cost, including related costs such as transport or duty. Its opposite is the issue note, which documents a withdrawal from stock.

A receipt note is also issued when finished goods come in from production, when a customer returns goods, or on transfers between warehouses. It is advisable to distinguish a note type for each kind of movement so that the movements can be analysed later.

How it works in practice

When goods arrive we compare the receipt note with the supplier’s delivery note and invoice. If the invoice arrives before the goods, they are recorded as goods in transit; if the goods arrive first, the note is issued and the invoice matched later. Differences in quantity or price are handled by a complaint.

In warehouse software linked to the accounts, the receipt note flows into the books automatically. It is important to set the inventory accounting method and valuation, such as FIFO or weighted average, correctly so that the stock value in the books agrees with the stock records.

At month end we check receipt notes without invoices and invoices without receipt notes. Such differences point to an unrecorded liability or missing goods and would distort inventory and profit at the year-end close.

What to watch out for

Goods taken in without a receipt note are missing from the records even though they physically exist. The stock count then shows a surplus that has to be explained. We therefore recommend issuing the note on the day of receipt, never afterwards.

A receipt note signed without actually checking the contents of the delivery weakens the position in a complaint. If missing or damaged goods are found later, the supplier can rely on the signed, unqualified receipt.