SOP for Assigning Goods Receipt Note (GRN) Number to Received Materials – V 2.0

Standard Operating Procedure for Assigning Goods Receipt Note (GRN) Number to Received Materials

Department	Warehouse / Quality Assurance / Procurement
SOP No.	SOP/RM/012/2025
Supersedes	SOP/RM/012/2022
Page No.	Page 1 of 15
Issue Date	01/02/2025
Effective Date	05/02/2025
Review Date	01/02/2026

1. Purpose

The purpose of this Standard Operating Procedure (SOP) is to establish a clear and consistent method for assigning a Goods Receipt Note (GRN) number to incoming raw materials. A Goods Receipt Note serves as the official record of goods received against a specific Purchase Order (PO), documenting quantities, conditions, and any observed discrepancies. Proper GRN assignments help maintain a robust audit trail, support financial accuracy, and ensure seamless coordination among the Warehouse, Procurement, and Finance Departments. This SOP also provides guidelines to prevent duplicate entries, reduce errors in stock reconciliation, and enhance traceability throughout the material lifecycle.

2. Scope

This SOP applies to all raw materials—active pharmaceutical ingredients (APIs), excipients, intermediates, packaging materials, and any other consumables—that arrive at the facility’s warehouse or receiving dock. It outlines the entire process of generating and allocating GRN numbers, starting from receiving materials to updating the inventory management system. The procedure includes:

Verification of Purchase Orders and supplier documentation.
Cross-checking delivered items for quantity and packaging accuracy.
Assigning a unique GRN number to each consignment or partial consignment.
Updating inventory records and communicating GRN details to relevant departments (Finance, QA, etc.).

All personnel involved in Warehouse operations, Procurement, Quality Assurance (QA), and Finance—particularly those responsible for material receiving, document management, and record-keeping—must follow this SOP. The instructions within apply to both physical (hardcopy) systems and electronic data management platforms.

3. Responsibilities

Warehouse Personnel:
- Receive incoming materials, verify delivery documents (packing lists, bills of lading, or supplier invoices), and check for damage or discrepancies.
- Initiate the GRN assignment process by confirming that the consignment matches the Purchase Order (PO) in terms of product description, batch numbers, and quantity.
- Update the Raw Material Receiving Register with GRN references, ensuring consistency between physical records and electronic systems.
- Label or mark received goods with the assigned GRN number before forwarding them to the quarantine area (if required) or approved storage.
Procurement Department:
- Ensure that Purchase Orders (POs) accurately reflect item descriptions, prices, and expected quantities.
- Communicate with suppliers regarding any discrepancies or partial deliveries, providing instructions for revised or additional shipments.
- Collaborate with the Warehouse and QA on non-conformance or deviation reports if material discrepancies are identified during GRN assignment.
Quality Assurance (QA) Team:
- Set standards for acceptable discrepancies or deviations (e.g., shortage thresholds, acceptable variance in batch numbers).
- Oversee final release of materials, including any required quarantine or testing, once the GRN is generated.
- Work with the Warehouse and Procurement to investigate discrepancies, maintain a robust quality system, and authorize corrective actions.
Finance Department (If Applicable):
- Use the GRN number to reconcile invoices from suppliers and verify that payments align with the actual goods received.
- Manage financial audits and track material costs against budget forecasts, referencing GRN numbers for all received items.

4. Accountability

The Warehouse Manager is accountable for ensuring that GRN assignments are conducted correctly and consistently. The QA Manager has final authority in any disputes or deviations related to material acceptance. Any modifications or updates to this SOP must be reviewed and approved by QA Management to maintain alignment with GMP standards and regulatory requirements. Procurement is responsible for updating or revising POs as needed, while Finance utilizes GRN data for payment processing and cost tracking.

5. Procedure

5.1 Pre-Verification and Document Preparation

Before generating a GRN number, Warehouse Personnel must gather and review all relevant documents, ensuring that the incoming shipment aligns with the organization’s expectations.

Collect Purchase Order (PO) and Supplier Documents
1. Retrieve the corresponding Purchase Order (PO) from the Procurement Department or electronic system, verifying that item descriptions, quantities, and delivery dates match the scheduled shipment.
2. Obtain the supplier’s packing list, commercial invoice (if applicable), and any additional documentation such as Certificates of Analysis (CoA), Safety Data Sheets (SDS), or delivery notes.
3. Confirm that the PO number is clearly indicated on the supplier’s documentation to avoid confusion with other orders.
Initiate Receiving Checks
1. Upon the shipment’s arrival, conduct preliminary checks per the facility’s receiving SOPs (e.g., verifying transport seal integrity, scanning barcodes if used, and ensuring no visible external damage).
2. If any discrepancies are immediately evident—such as incorrect product labeling, missing boxes, or partial deliveries—note them in the Raw Material Receiving Register and alert Procurement or QA to initiate further investigation.

5.2 Assigning a GRN Number

The Goods Receipt Note (GRN) number is the primary identifier for received consignment records. This step ensures each received batch is logged and traceable within the organization’s materials management system.

Determine GRN Number Format
1. Follow the organization’s approved numbering convention (e.g., “GRN/Year/Sequential No.” or “GRN-2025-0001”). Standardizing the format facilitates easier tracking, auditing, and cross-referencing among departments.
2. Keep a master log (electronic or paper-based) of assigned GRN numbers to avoid duplicates or missing entries. This log can be integrated into the enterprise resource planning (ERP) system if available.
Allocate GRN Number
1. Based on the date of receipt and the next available sequential number, assign the GRN to the new consignment. Ensure that partial shipments of the same PO (received on different dates) each receive a unique GRN number, referencing the same PO.
2. Record the newly generated GRN number in the Raw Material Receiving Register (Annexure-1) alongside the PO details, supplier info, and any preliminary remarks on material condition. Include the date, time, and name of the Warehouse Personnel responsible for this step.
Link GRN to Electronic Systems (If Applicable)
1. If the organization uses an ERP or warehouse management system (WMS), input the GRN number and related data (batch numbers, quantities, any deviations) into the system. Save or finalize the entry to generate a digital record that other departments (Procurement, Finance) can access.
2. Print a GRN slip or sticker from the electronic system, if configured, and attach it to the shipment records or container labels as needed.

5.3 GRN Documentation and Verification

Properly documenting and verifying the GRN is crucial to ensure the data is accurate, consistent, and audit-ready.

Completing the GRN Form
1. Fill out a standardized GRN Form (if used) containing fields like date of receipt, PO number, supplier details, item description, batch/lot numbers, actual quantities received, and remarks on discrepancies or damage.
2. Obtain signatures or electronic approvals from both Warehouse Personnel (for receiving confirmation) and QA (for quality review), especially when materials are high-risk, controlled substances, or regulated items requiring additional oversight.
Cross-Checking Against PO
1. Compare the actual received quantity (as documented in the GRN) with the quantity stated on the PO. If there is an overage or shortage beyond the acceptable tolerance (e.g., ±5%), highlight the difference and bring it to the attention of Procurement for resolution.
2. Verify batch numbers listed on the supplier documents and the containers. Any mismatch (e.g., unlabeled drums or conflicting batch details) must be quarantined and flagged for QA investigation.
Labeling and Identification
1. Ensure each container or pallet has a legible label with the assigned GRN number. For large deliveries involving multiple pallets, label all pallets or containers to maintain traceability.
2. Optional: Some organizations use color-coded GRN labels or barcodes to accelerate scanning and retrieval processes. If so, apply these standardized identification markers consistently.

5.4 Handling Discrepancies or Deviations

Not all shipments arrive in perfect condition or quantity. The GRN process must be flexible enough to capture and escalate issues immediately.

Shortages and Overages
1. If the received quantity is less or more than the quantity indicated on the PO, record the difference in the “Remarks” section of the GRN form. Immediately notify Procurement for supplier follow-up and QA if quality is at stake.
2. In some instances, partial shipments are expected. In such cases, multiple GRNs may be generated referencing the same PO but different consignment dates or container counts.
Damaged or Suspect Materials
1. If materials appear damaged, contaminated, or improperly labeled, assign a GRN number but mark them as “Damaged” or “Suspect” in the registry. QA may recommend quarantining these materials or rejecting them outright, depending on severity.
2. Document all observed damage (photos, notes) and cross-reference them with the GRN. This ensures any subsequent claim or credit with the supplier has the necessary supporting evidence.
Deviations and Non-Conformance Reports
1. Major variances in quantity, incorrect items, or repeated deviations necessitate a formal deviation report per the organization’s quality system. The GRN provides the reference for investigating how the discrepancy occurred.
2. QA, Procurement, and Warehouse Management collaborate to determine if the deviation requires a Corrective and Preventive Action (CAPA) plan—especially if recurring problems indicate systemic supplier or internal process issues.

5.5 Communication and Record Update

Once the GRN is assigned and verified, the information must be circulated to relevant departments and the records updated to reflect the accurate stock situation.

Inventory Management System Update
1. Input the final received quantities, batch details, and GRN number into the warehouse or ERP system. Mark whether the goods are currently in quarantine or available for use, depending on QA’s instructions.
2. Ensure any partial or staged deliveries for the same PO are distinctly logged under separate GRN entries, maintaining full traceability from initial to final shipment.
Notification to Procurement and Finance
1. Procurement may need the GRN number to finalize the supplier payment process or to investigate any PO-related discrepancies. Provide them with the GRN records promptly.
2. Finance uses GRN data to match supplier invoices with the actual goods received. They confirm that invoice amounts correlate with the same batch and quantity indicated on the GRN, preventing payment for unreceived items.
QA Confirmation
1. QA reviews the GRN details to ensure the receiving process meets GMP and internal quality standards. If materials require testing, QA may instruct the Warehouse to keep them in quarantine until test results confirm compliance.
2. After QA approval, the Warehouse Personnel can move the materials to the designated approved storage areas, updating the inventory status from “Quarantined” to “Released.”

5.6 Documentation and Record-Keeping

Accurate documentation is crucial for regulatory compliance, internal audits, and overall data integrity.

Raw Material Receiving Register
1. Enter the GRN number, PO number, and other key details (supplier, batch, quantity) in the Raw Material Receiving Register (Annexure-1). Each entry must be signed or initialed by the personnel responsible for receiving.
2. File or attach the supplier documents (packing list, invoice, or delivery note) with the GRN record for cross-reference. If digital systems are used, ensure scanned copies or digital attachments are uploaded.
Sampling Log (If Applicable)
1. Record the GRN number in the Sampling Log (Annexure-2) if QC samples are drawn at this stage. Linking the sample ID to the GRN ensures that test results can be easily tracked back to the correct batch and consignment.
2. Document any OOS findings or rejections with reference to the GRN so that QA can conduct timely investigations.
Retention and Storage of Records
1. All physical and electronic GRN documents must be stored securely for the retention period specified by local regulations and internal policies (commonly 5–7 years). Authorized personnel should be able to retrieve these records promptly for audits or investigations.
2. Implement access controls or password protections if electronic systems are used, ensuring data integrity (no unauthorized edits or deletions). Regular backups of key data are recommended to mitigate loss from system failures.

6. Abbreviations

SOP: Standard Operating Procedure
GMP: Good Manufacturing Practice
QA: Quality Assurance
QC: Quality Control
PO: Purchase Order
GRN: Goods Receipt Note
ERP: Enterprise Resource Planning
WMS: Warehouse Management System
OOS: Out of Specification
SDS: Safety Data Sheet
CoA: Certificate of Analysis
CAPA: Corrective and Preventive Action

7. Documents

Raw Material Receiving Register (Annexure-1)
Sampling Log (Annexure-2)
GRN Form or Electronic GRN System Output
Purchase Orders (POs), Packing Lists, and Supplier Invoices

8. References

21 CFR Part 211 – Current Good Manufacturing Practice for Finished Pharmaceuticals (US FDA)
EU GMP Guidelines Part I – Basic Requirements for Medicinal Products
ICH Q7 – Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients
Company-Specific Finance and Procurement Policies
Company ERP / WMS User Manuals

9. SOP Version

Version: 2.0

10. Approval Section

	Prepared By	Checked By	Approved By
Signature
Date
Name
Designation
Department

11. Annexures

Annexure-1: Raw Material Receiving Register

Date	Supplier Name	Material Name	Batch Number	PO Number	GRN Number	Quantity Received	Remarks
01/02/2025	ABC Pharma	API-X	Batch 2025-AX-01	PO-55555	GRN-2025-0010	100 kg	No Discrepancy
02/02/2025	XYZ Chemicals	Excipient Y	Lot EX-2025	PO-66666	GRN-2025-0011	95 kg	Short by 5 kg

Annexure-2: Sampling Log

Date	Material Name	Batch Number	GRN Number	Sampling Personnel	QC Test Performed	Result
01/02/2025	API-X	Batch 2025-AX-01	GRN-2025-0010	John Doe	Identification, Assay	Pass
03/02/2025	Excipient Y	Lot EX-2025	GRN-2025-0011	Jane Smith	Purity Check	Pending

Revision History:

Revision Date	Revision No.	Revision Details	Reason for Revision	Approved By	Page No.	Ref. Point No.	Details of Revision
01/01/2024	1.0	Initial Version	New SOP Creation	QA Head	All	All	Established procedure for assigning GRN numbers
01/02/2025	2.0	Detailed Steps Added	Standardization of Document	QA Head	All	All	Included guidance on partial shipments, electronic systems, and discrepancy handling