Goods Received Note (Malaysia)
GOODS RECEIVED NOTE (GRN)
GOODS RECEIVED NOTE (GRN)
Receiving Company: [Buyer Name]
Delivery Address: [Buyer Address]
GRN No.: [Grn Number] | Date of Receipt: [Date Received]
Supplier: [Supplier Name] (SSM No.: [Supplier S S M])
Document References
Purchase Order No.: [Po Number]
Supplier Delivery Order No.: [Supplier D O Number]
Supplier Invoice No.: [Supplier Invoice Number]
These references enable three-way matching (PO — Invoice — GRN) as required by Malaysian accounts payable internal controls. Payment shall only be authorised when all three documents match.
Goods Received
[Goods Description]
Overall Condition on Receipt: [Condition On Receipt]
Condition Details / Defects: [Condition Details]
Storage Location: [Storage Location]
Legal and Accounting Notice
This Goods Received Note is an internal accounting document of [Buyer Name] prepared upon receipt and inspection of goods delivered by [Supplier Name]. It forms part of [Buyer Name]'s accounting records under Section 82 of the Income Tax Act 1967 (Act 53) and Section 245 of the Companies Act 2016 (Act 777).
A signed GRN without notation of defects may constitute acceptance under Section 35 of the Sale of Goods Act 1957 (Act 382). Any defects, short delivery, or non-conforming goods must be noted on this GRN at the time of receipt to preserve the buyer's rights under Section 37 of the Sale of Goods Act 1957.
This GRN is admissible as documentary evidence under Section 73 and Section 74 of the Evidence Act 1950 (Act 56) in the event of a commercial dispute regarding delivery.
Authorisation Signatures
RECEIVED AND INSPECTED BY: [Received By]
Signature: ___________________________ Date: ___________________________
APPROVED BY (Stores Manager): [Approved By]
Signature: ___________________________ Date: ___________________________
Received and Inspected By (Storekeeper)
________________
Signature
Approved By (Stores Manager)
________________
Signature
What Is a Goods Received Note (Malaysia)?
A Goods Received Note in Malaysia records the payment or receipt of goods and the particulars supporting the entry.
The GRN is a key document in the three-way matching process used by Malaysian companies to verify supplier invoices before authorising payment: the Purchase Order (PO) confirms what was ordered and at what price; the Supplier's Invoice confirms what is being billed; and the GRN confirms what was actually received. Payment is authorised only when all three documents match — any discrepancy (e.g., short delivery, wrong goods, or price difference) is flagged for resolution before payment.
Under Section 82 of the Income Tax Act 1967 (Act 53), Malaysian businesses must maintain records of all business transactions, and GRNs form part of the documentation supporting inventory purchases and associated deductions for cost of goods sold. The Inland Revenue Board of Malaysia (LHDN) may review GRNs during tax audits to verify that claimed purchases and inventory movements correspond to actual deliveries. The Companies Act 2016 (Act 777) requires companies to maintain proper accounting records under Section 245, of which GRNs are a component in the procurement cycle.
In legal disputes between buyers and suppliers over short delivery, damaged goods, or non-delivery, the GRN (or its absence) is critical evidence. A signed GRN constitutes the buyer's acknowledgement of receipt, and a GRN noting defects or short delivery protects the buyer's right to claim damages or reject the goods under Section 37 and Section 39 of the Sale of Goods Act 1957 (Act 382). A signed GRN without notation of defects may constitute acceptance of the goods under Section 35 of the Sale of Goods Act 1957.
The legal framework governing the Goods Received Note (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Goods Received Note (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies Act 2016 (Act 777) sets the foundational requirements.
When Do You Need a Goods Received Note (Malaysia)?
A Goods Received Note in Malaysia is prepared in every procurement transaction where physical goods are delivered to the buyer.
A GRN is needed when a Malaysian manufacturer receives raw materials, components, or packaging from a supplier — the GRN records the quantity and condition of materials received, confirms they match the Purchase Order, and triggers the three-way matching process before payment is released.
A GRN is required when a Malaysian retailer or distributor receives a stock delivery from a supplier — the GRN records the quantities delivered against the PO, and any short delivery or damaged items are noted so that credit notes or debit notes can be processed.
A GRN is needed when a construction contractor in Malaysia receives building materials, equipment, or plant on site — the GRN is signed by the site supervisor, confirms delivery, and is attached to the supplier's delivery order and invoice for the project's cost records.
A GRN is required in a government procurement context when a Malaysian government agency or statutory body receives goods under a supply contract — the GRN is the formal acceptance document that triggers the supplier's right to invoice under the government procurement terms.
A GRN is needed when goods are imported into Malaysia and received at the warehouse or factory after customs clearance — the GRN confirms the quantities received against the shipping documents (Bill of Lading, Packing List) and triggers the payment of the Trust Receipt or LC obligation to the bank.
A GRN is used as evidence in a commercial dispute between a Malaysian buyer and supplier when the buyer claims short delivery or damaged goods — the GRN showing the actual quantity received and any defects noted at delivery supports the buyer's claim for the supplier's invoice to be adjusted.
What to Include in Your Goods Received Note (Malaysia)
A Malaysia Goods Received Note must include the following essential fields.
GRN Number: A unique sequential GRN number for accounting reference and audit trail. The GRN number is cross-referenced in the supplier payment process.
Date of Receipt: The actual date on which goods were received at the buyer's premises — critical for inventory valuation and for recording the accrual liability under Malaysian accounting standards (MFRS 102 Inventories).
Supplier Name: Full legal name of the supplying company and, where applicable, the SSM registration number.
Purchase Order Reference: The PO number to which this delivery relates, enabling three-way matching between PO, Invoice, and GRN.
Delivery Order / Invoice Reference: The supplier's Delivery Order (DO) number or Invoice number, allowing the GRN to be matched to the supplier's shipping documentation.
Itemised Goods Description: For each line item: item code or description; quantity ordered (per PO); quantity received; unit of measure; and any discrepancy between ordered and received quantities.
Condition on Receipt: Note the condition of goods received — 'Good condition', 'Damaged (described)', 'Short delivery (quantity noted)', or 'Rejected (reason stated)'. This notation is critical for the buyer's rights under Section 37 of the Sale of Goods Act 1957 (Act 382).
Storage Location: Note the warehouse location or store bin number where the goods are placed, for inventory management.
Received By: Signature and name of the person who physically received and inspected the goods — typically the storekeeper, warehouse supervisor, or receiving officer.
Approved By: Signature of the supervisor or stores manager confirming the GRN is accurate and authorising the goods to be entered into inventory.
Additional compliance elements for a Goods Received Note (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Goods Received Note (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/business/corporate/goods-received-note-malaysia
"Goods Received Note (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/business/corporate/goods-received-note-malaysia.
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author = {{Forms Legal}},
title = {Goods Received Note (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/business/corporate/goods-received-note-malaysia}},
note = {Free legal document template. Based on Companies Act 2016 (Act 777)}
}Frequently Asked Questions
Three-way matching is a standard accounts payable control process used by Malaysian companies to verify that a supplier's invoice should be paid before releasing payment. The three documents matched are: (1) the Purchase Order (PO) — confirming what goods or services were authorised to be purchased and at what agreed price; (2) the Goods Received Note (GRN) — confirming that the goods were actually received in the correct quantity and condition; and (3) the Supplier's Invoice — confirming the amount the supplier is billing. Payment is only authorised when all three documents match: the invoice price matches the PO price; the invoice quantity matches the GRN quantity; and the goods received match the goods ordered. Any discrepancy triggers a query to the supplier for a Credit Note (for overbilling) or further investigation. Three-way matching is endorsed by the Malaysian Institute of Accountants (MIA) as a fundamental internal control and is required under the procurement policies of Malaysian public companies, GLC (Government-Linked Companies), and statutory bodies.
A Goods Received Note (GRN) is not a document required by the Royal Malaysian Customs Department (RMCD) for customs clearance purposes under the Customs Act 1967 (Act 235) — customs clearance is based on the Customs Import Declaration (K1 form), Bill of Lading or Airway Bill, Commercial Invoice, and Packing List. However, for post-importation audit and tax purposes, LHDN auditors and RMCD auditors may request GRNs to verify that imported goods were actually received and match the quantities declared in the customs documentation. A GRN showing quantities received that differ significantly from the customs declaration may raise concerns about under-declaration or misclassification of goods. Malaysian importers should ensure their GRNs are consistent with the shipping documents, customs declarations, and supplier invoices to avoid audit issues.
Yes, a Goods Received Note (GRN) is admissible as documentary evidence in Malaysian courts under Section 73 and Section 74 of the Evidence Act 1950 (Act 56) as a business record. In a dispute between a buyer and supplier over short delivery, non-delivery, or damaged goods, the GRN is critical evidence: a signed GRN confirming receipt of the agreed quantity constitutes the buyer's acknowledgement of delivery and may constitute acceptance under Section 35 of the Sale of Goods Act 1957 (Act 382); a GRN noting short delivery or defects at the time of receipt supports the buyer's right to reject goods or claim damages under Section 37 of the Sale of Goods Act 1957; and the absence of a signed GRN may support a buyer's claim that goods were never received. Malaysian courts in the Magistrates' Court, Sessions Court, and High Court of Malaya regularly receive GRNs as supporting evidence in payment disputes between commercial parties.
A Goods Received Note (GRN) and a Delivery Order (DO) serve complementary but distinct functions in Malaysian procurement. A Delivery Order is prepared by the supplier and accompanies the shipment of goods — it lists the items being delivered, the quantities, and the delivery address, and is presented to the receiver at the point of delivery. The receiver signs the DO to acknowledge receipt, and the supplier retains the signed copy as proof of delivery. A Goods Received Note is prepared internally by the buyer after inspecting the delivered goods — it records what was actually received, compares it to the PO, notes any discrepancies or damage, and serves as the trigger for payment processing. The signed Delivery Order confirms delivery occurred; the GRN confirms what was received matched what was ordered. In a legal dispute, both documents together provide comprehensive evidence of the delivery transaction, but the GRN carries more weight as it reflects the buyer's own inspection and verification.
A Goods Received Note in Malaysia should be signed by the person receiving and inspecting the goods, and ideally countersigned by a supervisor, to be a valid and reliable accounting record. An unsigned GRN has limited evidentiary value in a legal dispute because it does not confirm who received the goods or whether the stated quantities and condition were verified. For Malaysian companies operating under the three-way matching control, the GRN signature is the key authorisation confirming that goods were received — without it, the accounts payable team should not release payment. For audit purposes, external auditors appointed under Section 265 of the Companies Act 2016 (Act 777) will typically select GRNs for testing as part of the purchase cycle audit, and unsigned or undated GRNs are reported as control weaknesses. Companies should train receiving staff to sign GRNs promptly upon inspection and to note any discrepancies before signing.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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