In Zoho Books / Zoho Inventory, GRN and GDN are important documents used to track stock movement and ensure accurate inventory and accounting records.

GRN – Goods Receipt Note (Inward)

What is GRN?

A GRN (Goods Receipt Note) is created when goods are received from a supplier after placing a Purchase Order.

It confirms:
Quantity received
  Condition of goods
  Supplier delivery
  Stock entry into warehouse

In Zoho, GRN is managed through Bills / Purchase Receipts.

How GRN Works in Zoho

Step 1: Create Purchase Order

Go to:

Purchases → Purchase Orders → New

Step 2: Receive Goods (Create GRN)

Go to:

Purchases → Purchase Orders → Select PO → Receive Items

This creates a Purchase Receive / Bill → Acts as GRN

Once done:
Stock increases
  FIFO layers created
 Inventory updated

Step 3: Create Vendor Bill (If Not Already)

If you only received goods:

Convert Receipt → Bill

For accounting posting.

GDN – Goods Delivery Note (Outward)

What is GDN?

A GDN (Goods Delivery Note) is issued when goods are delivered to customers.

It confirms:
Items shipped
  Quantity delivered
  Delivery date
  Receiver acknowledgement

In Zoho, GDN is handled through Delivery Challan / Shipment / Package Slip.

How GDN Works in Zoho

Step 1: Create Sales Order

Go to:

Sales → Sales Orders → New

Step 2: Deliver Goods (Create GDN)

From Sales Order → Click Create Package / Ship Items / Delivery Challan

This acts as GDN

Once created:
Stock decreases
  FIFO applied
  COGS calculated

Step 3: Create Invoice

After delivery:

Convert → Invoice

GRN vs GDN in Zoho (Comparison)