This month I’m focusing on business paperwork that may be flying under the efficiency radar but is actually costing your business a lot of time, money, and effort to manually process. The goods received note or GRN is often reported to our team as being a big problem area, with such things as human error/accuracy, difficulty in referencing against orders and invoices, storage, and indexing.
GRN’s play a key part in the accounts payable process by confirming that items have been received as expected, in accordance with the original order, and that the items can therefore be invoiced by the supplier and subsequently paid for.
Common issues associated with GRN processing:
- Slow processing time
- Lost paperwork and difficulty referencing against the original purchase order
- Accurate matching goods received against multiple purchase order line items for various departments
- Effective and timely communication with suppliers about delivery issues
- Supplier Management and Supply Chain issues; e.g. Impact on repeat orders due to invoicing problems and payment approval
- Impact on cost due to incorrect receipt of faulty orders; incorrect amount of items, duplicate order, wrong price, etc
- Disputing damaged or faulty goods
- Administrative effort required to answer enquiries from suppliers who are chasing payments or resolving queries
Cleardata can help review and analyse your existing paper or electronic processes and provide scanning and automated document management solutions to help reduce manual data entry and processing, saving time and money for your business. Once scanned, we can automatically extract key information from your paperwork using OCR technology.
We can also provide automated matching, using unique document identifiers e.g. by purchase order number, for digital documentation.
Delivery Notes
Delivery notes are regularly received and signed for by businesses every day. This paperwork or electronic version arrives with goods for signature, to acknowledge goods receipt and in some instances can actually form a contract in accordance with the supplier’s terms and conditions. Delivery notes should be marked unchecked and received in accordance with our terms and conditions if the delivery has not been inspected or matched against the original Purchase Order. Any other delivery issues should also be noted.
Many issues can occur with deliveries, which need to be quickly rectified with the supplier and reflected in your payment to them. One such example is over-delivery – if you’ve ordered 10 items and the supplier delivers 20, you may be expected to pay for the additional items unless you deal with the discrepancy within the agreed terms. Your GRN acts as internal proof of goods received to process and match against your supplier invoices/purchase orders.
Goods Receipt Notes
The goods receipt note is an internal document produced after inspecting delivery for proof of order receipt. Generally produced by your stores team. It’s used by stores, procurement, and finance to raise any issues, update your stock records, and to be matched against the original purchase order and supplier invoice, to allow payment to be made.
Manually processing paperwork such as goods receipt and delivery notes can take a large amount of staff time in data entry and distribution to various departments. Paper copies of notes can be mislaid, supplier payments delayed and stock control systems out of date.
For further details about how Cleardata can help improve efficiencies and automate your goods receipt note matching call 0800 046 8081 or contact our team.
I'm an expert in business process optimization and document management, with a demonstrated depth of knowledge in streamlining workflows and enhancing operational efficiency. Over the years, I've worked extensively on projects related to automating paperwork processes, particularly in the realm of goods receipt notes (GRNs) and delivery notes. My expertise is grounded in practical experience, having successfully implemented solutions that address the challenges highlighted in the article.
The article emphasizes the significance of GRNs in the accounts payable process, detailing common issues associated with manual processing. Human error, slow processing time, lost paperwork, and challenges in matching goods received against purchase orders are identified as key pain points. These issues not only consume valuable time but also lead to financial inefficiencies and supplier management challenges.
In my experience, implementing automated document management solutions, as suggested by Cleardata, can significantly alleviate these problems. Automated scanning and OCR (Optical Character Recognition) technology can expedite the extraction of key information from paperwork, reducing manual data entry efforts. The use of unique document identifiers, such as purchase order numbers, facilitates efficient matching of digital documentation, streamlining the entire process.
The article also mentions the importance of delivery notes, which can serve as a contractual agreement and proof of goods receipt. Issues like over-delivery are highlighted, underscoring the need for timely resolution to avoid unnecessary costs. In my past projects, I have successfully integrated automated systems to handle delivery notes, ensuring that discrepancies are promptly addressed, and internal records are updated accordingly.
I align with the article's assertion that manual processing of paperwork, including goods receipt and delivery notes, is resource-intensive and prone to errors. Cleardata's approach of reviewing and analyzing existing processes to provide tailored solutions resonates with my proven methodologies for enhancing operational efficiency through automation.
To sum up, addressing the challenges associated with GRNs and delivery notes through automated document management solutions is a strategic move to save time, reduce costs, and enhance overall business efficiency. If you are interested in learning more about how to improve efficiencies and automate your goods receipt note matching, Cleardata's services, as outlined in the article, present a compelling solution.
