Discover the Essential Courier Invoice Format for NPOs

Courier invoice format for NPOs

hi everyone welcome back to sahab Academy today in this video we are going to discuss about grn Goods received note and we're going to discuss the entire process that is related with you know issue of grn who will issue it why is it issued and the whole process of it all right so let's begin this video and let's understand what is this grn now see here we have the concept of grn it's really simple and straightforward as the name suggests itself it is nothing but just a document that we prepare when we receive goods from our supplier hence the name Goods receive note okay so it is nothing but a proof that we have got the goods we have got the delivery from our supplier and we have accepted it that's all okay document that acknowledges the delivery of goods by A supplier and the customers subsequent acceptance is that clear so let's just discuss this entire process with this example see here let's just say we are this company ABC limited and now you have to think everything from this company's point of view okay so let's just say we have over here a credit purchase credit purchase means we have not paid anything okay we have just placed an order we have promised to pay in future so right now no cash flow has happened right so see we wanted to purchase something some Goods so we called our supplier we discussed everything on the phone okay the terms and then the negotiation and everything okay we agreed to a price and then we placed an order now tell me how to place an order let me tell you we sent out a document containing what all things we need okay the color the size the quantity everything all the description will be mentioned in that and then that document will be sent out to the seller either will email it or we will send it out you know in hand fine so now this purchase order this document when it will be received by the seller from the point of view of the seller he will refer it to as sales order because to us it's purchase for the other party it would be sales isn't it yes now what the seller will do is seller will confirm the order once it's confirmed then he has to dispatch the goods he has to send the goods from his Warehouse isn't it yes but now before doing that before dispatching what he will do is he will prepare a document that's called Goods dispatch note gdn not grn gdn Goods dispatch note or it can also be called as Goods delivery note in that document he will mention exactly what all items he's sending out from his Warehouse to this customer right to us yeah he will mention exactly in that the detail of the customer and then the time the location and everything yeah how he is sending it out yeah what's the courier company or the truck everything will be mentioned in that so he will send out the goods along with this GD and this document and then we'll receive it in our warehouse fine or in our store now when we receive the goods what are we going to do tell me we are going to inspect the goods of course have we received what we have ordered isn't it so we will do the inspection so we'll inspect against what against the purchase order against this document see when we sent out the purchase order we also have a copy of that with us right so we'll take our purchase order what we have ordered and then what we have received we will compare is it matching or not yeah have we received exactly what we have ordered isn't it it's important for us to know then only we can accept or reject the order okay fine and then we'll also examine the physical condition is there any damage is it working in good condition yeah all these things we will check okay let's just say some of the items have passed our quality checks and some of the items have been you know what do you say are damaged and they have not passed the quality check so what are we going to do now we are going to reject those remaining items okay reject means we are going to send it back to the seller and we'll inform the seller okay and then immediately at this time what we have to do yeah what the warehouse team has to do the manager he has to prepare something called as grn Goods receive note a document that acknowledges the delivery of goods yeah we have to accept in this document that we have got the delivery from you okay all these items we have received from you and you know some of that we have accepted and some of that we have rejected okay both the things needs to be mentioned here and the customers subsequent acceptance what we have accepted that also must be mentioned as well as what we have rejected right is it clear so how will this Goods receive note look like see something like this supplier name will be there okay who is preparing this we are preparing this our company this is our internal document okay so supplier name will be there purchase order number the date and time of the delivery the delivery location yeah maybe there can be various warehouses of a certain company a big company right so delivery location everything will be mentioned and then the list of the items the quantity size color the codes yeah the product codes can be there and many things the tax details everything will be mentioned over here the total and if any remarks are then then you know we can put the remarks over here the comments and then the grand total and then who is receiving it and then who has you know done the inspection everything will be mentioned over here then this Goods received node has to be you know kept with the warehouse only the original one and then the copies of this will will be sent out to the relevant departments okay the department which are responsible in this uh what do you say in this credit purchase so now first is not the department first we have to send this grn copy to the supplier only because to let the supplier know what we have accepted and what we have rejected okay so that he can only invoice us he can only ask us money for the accepted items is that clear that's the main idea and we are confirming the delivery that delivery is successful okay so see here uh you know four copies will be made first we'll send it out to the supplier he will get to know okay uh my order you know has been delivered and then he will send the invoice okay later he will send the invoice right now let's just discuss the grn only okay so grn the next copy will be sent out to the purchase department now you will wonder why purchase Department understand purchase Department placed the order they created this Chase order document isn't it so they should know what we have accepted and what has been rejected okay what has been accepted that's fine order is fulfilled but the rejected items that is also needed by the company that's why we placed an order so now purchase department needs to place a fresh new order new purchase order document needs to be created and the order should be place with the seller is that clear right that's why we have to send the copy of grn to purchase department and then to the accounts Department as well because the account department has to do the accounting of this that we have received the goods they have to update the inventory balance in the stores Ledger they have to increase the inventory isn't it yes and then maybe if it's at the you know accounting period ends then accounts Department may also have to record an approval acral of what acral of that uh we have received Goods but we have not been invoiced invoice is not received but we have received Goods okay so this kind of approval can also be uh recorded fine but that's separately another video let's not discuss that further okay so then then there can also be another departments also but you know we can say retained in Warehouse okay one more copy will be retained in Warehouse the original one only so here I have said just three copies have been sent out is that clear okay now after this what will happen after this when seller will get the grn as I said he will send us the invoice what is invoice invoice means he's asking payment yeah he's demanding the payment please pay me yeah so understand we cannot pay him just like that okay there is a verification process what's that verification process there is three-way verification process see here three-way matching we have received the invoice leg just say from the supplier we have got the invoice now we can't pay the invoice directly and this invoice for us it would be called as purchase invoice because we have made a purchase from that seller and from the seller's point of view for him it would be his sales invoice is that clear okay so we'll take that supplier invoice the purchase invoice and we'll compare it with grn and purchase order understand properly now let's just say we placed order for 100 quantity in purchase order we have exactly mentioned what we want right 100 quantity we want let just say and then in grn what happened was 90 quantity was fine 90 quantity we have accepted the remaining 10 quantity was damaged so we had rejected 10 quantity let just say the supplier is asking for 100 quantity only okay like supplier is asking for 100 quantity only supplier is saying pay me 100 quantities money so can we pay the supplier 100 quantities money no we can't we can't the invoice will not be authorized for payment yeah we will call the supplier and we'll ask him to send another invoice is that clear so that's what will happen fine we have to match this this is a three-way verification process the quantities and the prices of these three has to be matched then only the invoice will be authorized for payment see here approve the invoice for payment only when all the three documents match quantities prices Etc okay the details of maybe the color or something like that is that clear so this is the concept of grn really simple and straightforward a document that acknowledges the delivery of goods by A supplier and the customer subsequent acceptance okay and gdn is different gdn is from the point of view of the seller when we make a credit sale at that time gdn comes into the picture we send the gdn uh along with the goods at the time of dispatch but the grn is from the point of view of the buyer when we receive the goods from our supplier you know we prepare this grn is that clear so that was the whole concept of grn that's all for this video okay see you in the next video bye