The documentation gap in AP
Many finance teams rely solely on POs and invoices for approval workflows. But that leaves a blind spot: Was the item actually received?
That’s where packing slips and goods receipt notes (GRNs) come in.
- Packing slip: Provided by the vendor or shipper; lists the goods delivered
- GRN (Goods Receipt Note): Internal document created by your receiving team confirming what actually arrived
Together, they form the third leg of the 3-way match (PO ↔ Invoice ↔ Receipt) and are your best defense against:
- Short shipments
- Wrong items
- Invoice fraud
Why it matters more than finance thinks
Skipping receipt verification can create major risks:
- Duplicate or early payments for goods not received
- Supplier disputes when inventory teams report shortages after AP has paid
- Inflated working capital usage, as cash goes out prematurely
According to Ardent Partners (2024), invoice error rates are 2–3x higher when receipt validation isn’t part of the process.
What GRNs unlock for finance
Integrating packing slips and GRNs into AP workflows gives finance real operational insight:
This verification adds an extra layer of control, especially for inventory-heavy businesses.
Why most AP teams ignore them
Despite their value, packing slips and GRNs rarely make it into the AP system.
Why?
- They’re physical or siloed: Often paper-based or stored in warehouse systems
- No workflow integration: AP teams can’t access or track them efficiently
- Too complex to reconcile manually: Matching line items by hand is slow and error-prone
How automation fixes this
Modern AP automation tools now integrate:
- OCR and AI to extract packing slip and GRN data
- Smart matching engines that align documents at the line-item level
- Exception routing to escalate quantity/price discrepancies before payment
The result:
- 3–5x improvement in payment accuracy
- Reduced disputes with receiving teams
- Faster cycle times even with tighter controls
Real impact: Receipt-based matching vs invoice-only
Packing slips and GRNs aren’t just warehouse paperwork. They’re essential documents for finance teams that want visibility, control, and confidence.
When integrated into your AP process with automation, they deliver faster, smarter payables with less risk.
Book a demo now and discover how AI-powered verification of GRNs and packing slips can transform your AP operations.
