Written by
Vijeta Shetty

Published on

Table of Contents

“Imagine paying a supplier in full, only to find out the shipment never arrived.”  

In our previous blog, we explored how integrating a goods receipt note (GRN) with invoicing enhances complete compliance of the P2P process in accounts payable. According to shared industry insights from an AP automation survey, businesses without a GRN in place face 2x more invoice disputes and report a 25% increase in vendor escalations and strained relationships. 

Why Some Businesses Skip GRN and Why It’s Risky 

Despite its critical role, nearly 62% of enterprises have adopted automated GRN systems, while 47% of AP teams still skip the goods receipt note (GRN) entry to keep invoice approvals moving faster. Many rely on basic gate entry records or assume deliveries are accurate, bypassing proper GRN verification.  

Key Reasons Businesses Skip GRN:

  1. Manual Processes: without automation, GRN entry relies on paper and physical matching of documents. This is slow and error-prone, so warehouse staff skip this, especially during multiple deliveries or partial shipments.    

If you’re still doing it manually, here’s why you should reconsider. 

  1. Limited Understanding of Three-Way Matching: Many teams don’t realize how 3-way matching (reconciliation of PO, invoice/DN, and GRN) prevents fraud or duplicate payments. By treating the GRN step as optional, they forgo the extra validation that keeps invoice payment accurate. 
  1. Speed Over Accuracy: Inward deliveries, especially in high invoice volumes or multi-location warehouses, are hard to track without a centralized system. This leads teams to perform a two-way match, comparing only the purchase order (PO) and invoice to save time. 
  1. Automation and ERP system integration: Many companies require automation and ERP system integration because their existing systems cannot reliably manage goods receipt note (GRN) processing. Without proper invoice automation and ERP connectivity, GRN management often turns into a burden. 
  1. Payment Pressure: In high-pressure environments, AP teams may skip GRNs to process payments faster and to maintain trust-based vendor relationships. 
Infographic showing reasons why businesses skip GRN verification, with icons for manual processes, speed, lack of ERP integration, limited awareness of 3-way matching, and payment pressure.
Five key reasons companies bypass GRN verification, leading to higher risk of invoicing errors and payment disputes.

4 Common Invoicing Issues Without a GRN 

  1. Difficulty Verifying Goods Received: Without a goods receipt note (GRN), businesses lose the official record that confirms goods match the purchase order (PO). As a result, teams struggle to validate the quantity, quality, and specifications of deliveries, which creates mismatches between what they ordered, received, and invoiced. 
  2. Risk of Overpayments: Skipping GRN verification increases the risk of overpaying for incomplete, incorrect, or damaged goods.  
  3. Dispute Handling Challenges: In cases of damaged or partial deliveries, missing GRNs create major hurdles in resolving supplier disputes. Without a documented receipt, businesses lack proof of delivery to challenge errors or initiate corrective action, disrupting the procure-to-pay (P2P) cycle. 
  4. Audit, Compliance & Fraud Risk:A missing GRN, bypassing the 3-way matching, leaves no clear audit trail, exposing your accounts payable process to compliance risks, duplicate payments, and increased fraud risk. 

FAQs  

Is GRN required for service-based procurement?

Yes. In service procurement, businesses use a Service Receipt Note (SRN) to confirm that contracted services were completed satisfactorily before invoicing.

Is invoice processing done before GRN? 

No, usually invoice processing happens after the GRN (Goods Received Note). (There can be exceptions in case of advance payments for example.) 

How do GRN and invoicing relate in the procure-to-pay cycle? 

The GRN confirms that the ordered goods were received. To guarantee correct, authorized payments, it is compared to the invoice and purchase order. 

What if there’s a discrepancy between the GRN and invoice? 

If quantities or quality don’t match, payment is paused. The AP team flags it, and the issue is resolved with the supplier before proceeding.

Do partial deliveries have multiple GRNs? 

Yes, partial deliveries can have multiple Goods Receipt Notes (GRNs); each GRN corresponds to the specific quantity received in a particular shipment. 

Can a payment be made without a GRN? 

It is not recommended to do so. The GRN document helps finance department teams verify all invoices before making payments. 

Conclusion 

Skipping the GRN step might feel like a shortcut, but it risks overpayments, inventory mismatches, and compliance gaps. Having a structured GRN number in a goods receipt note format ensures smoother reconciliation and stronger quality checks.   

Ready to tighten your invoice workflow?  Automate your GRN process with Compleo Invoice Platform  (CIP) in your invoice automation today. 

Book a free demo and experience seamless invoice automation with integrated GRN workflows.