Also called GRN, goods receipt note, inward entry, material receipt
A goods received note records what physically arrived from a supplier: which products, how many, in what condition, and for batch-tracked items the batch, expiry and MRP. It is made at the door or the store room, before the stock is counted as yours to sell.
The GRN is the middle of a three-way check: what you ordered on the purchase order, what arrived on the GRN, and what the supplier billed. If you pay the bill without it, you can end up paying for cartons that never came or were damaged.
A shop orders 50 cartons of cooking oil. 48 arrive and 2 are leaking. The GRN records 46 accepted and 2 rejected, so only 46 cartons are added to stock and the supplier's bill should match that. Kownt X records GRNs against purchase orders, including partial receipts.