Material Receipt Note (MRN)

A Material Receipt Note (MRN) is the official document that records the physical receipt of materials at a project site or warehouse against an approved Purchase Order (PO). When a vendor delivers goods, the storekeeper inspects the delivery, records what was actually received (which may differ from what was ordered), and creates an MRN to formalize the receipt.

Upon approval, the MRN triggers two critical system actions:

1. Stock lots are created — each accepted line item generates a new lot in the warehouse with full traceability (lot code, material, quantity, rate, putaway location, expiry date).
2. A finance voucher is generated — the accounting entry records the liability to the vendor, enabling three-way matching (PO ↔ MRN ↔ Invoice) during payment processing.

MRN List View

The MRN list screen shows all receipt notes for the currently selected job. From here you can view existing MRNs, filter by status, create new MRNs, or export data.

List Columns

Toolbar Actions

Filters

• Status — Filter by Draft, Submitted, Approved, or Rejected.
• Billed? — Filter by billed or unbilled MRNs (useful for accounts payable reconciliation).

MRN Workflow Overview

The diagram below shows the end-to-end MRN process from PO approval through to stock lot creation and finance voucher generation.

Step-by-Step: Creating an MRN

Follow these steps to create a Material Receipt Note when materials are delivered to your site.

Step 1: Navigate to MRN and Click "Add MRN+"

Go to Logistics → Material Receipt Note. Ensure the correct Job is selected in the job selector at the top of the page. Click the Add MRN+ button in the toolbar.

Tip: The job selector determines which POs are shown. Make sure you have selected the job that the PO was raised against before proceeding.

Step 2: Select the Purchase Order

The system displays a list of all approved Purchase Orders for the selected job that still have pending deliveries. The grid shows:

Column	Description
PO	Purchase Order code (e.g., PO/JOB-2025-0003/00003).
Date	PO creation date.
Currency	PO currency.
Value	Total PO value.
Vendor Code	Vendor's internal code.
Vendor	Vendor name.
Job Code	Associated job code.
Job	Job name/description.
Warehouse	Destination warehouse from the PO.
PO Status	Status of the PO (Approved, Partially Delivered, etc.).

Use the Warehouse and PO Status filter dropdowns to narrow the list. Click the + (plus) button on the row of the PO you want to receive against.

Important: Only POs with status "Approved" or "Partially Delivered" appear in this list. If you don't see the expected PO, verify that it has been fully approved in the Procurement module.

Step 3: Fill in the MRN Header

After selecting the PO, the MRN detail form opens. The top section shows the Purchase Order summary (read-only), followed by the MRN header fields that you need to fill in.

Purchase Order Section (Read-Only)

This section displays the PO details for reference. You cannot edit these fields — they are pulled directly from the selected PO:

• PO Code, Vendor, Job, Warehouse, PO Date, PO Value, Currency

MRN Header Fields

Field	Required	Description
MRN Code	Auto	System-generated code following the pattern MRN/<JobCode>/<Sequence>. Cannot be edited.
MRN Date	Yes	Date of material receipt. Defaults to today. Set this to the actual delivery date if different from today. Uses a date picker control.
Created By	Auto	The logged-in user who creates the MRN. Auto-populated and read-only.
Approved By	Auto	Populated automatically when the MRN is approved. Blank on new MRNs.
Attachment	No	Upload supporting documents (e.g., delivery challan, packing list, inspection report). Click the attachment button to upload files.
Warehouse	Yes	Destination warehouse where materials will be stocked. Pre-populated from the PO but can be changed if the delivery is to a different warehouse.
Vendor Ref. Number	Yes*	The vendor's delivery note number or invoice reference. Marked with an asterisk (*) — this is a required field for traceability and vendor reconciliation.
Delivery Note Date	No	Date on the vendor's delivery note or challan. Helps with delivery timeline tracking.
Delivery Vehicle No	No	Vehicle registration number used for delivery. Useful for site gate log and tracking.
PO Currency	Auto	Currency of the Purchase Order (read-only, from PO).
Stock Currency	Auto	Currency used for stock valuation. May differ from PO currency if the job uses a different base currency. Exchange rate conversion is applied automatically.

Step 4: Enter Received Quantities (Items in PO)

The Items In PO grid lists every line item from the selected Purchase Order. For each item, enter the quantities actually received in this delivery.

Line Item Fields

Column	Editable	Description
Select	Yes	Checkbox to include this line item in the MRN. Uncheck items that were not part of this delivery.
Item	No	Material name and code from the PO. Read-only.
Order UOM	No	Unit of measure as specified in the Purchase Order (e.g., Kg, Nos, Mtr).
Qty Ordered	No	Total quantity ordered in the PO for this line item.
Balance To Deliver	No	Remaining quantity yet to be delivered. Calculated as: Qty Ordered − (Previously Delivered across all earlier MRNs).
Conv. Factor	Yes	Conversion factor between Order UOM and Stock UOM. For example, if PO is in "Bags" and stock is in "Kg", the conversion factor converts between them. Defaults to 1 if UOMs are the same.
Stock UOM	No	The unit of measure used for stock tracking in the warehouse.
Delivered	Yes	The quantity physically delivered by the vendor in this shipment (in Order UOM). Enter the count as per the delivery note or physical inspection.
Accepted	Yes	The quantity accepted into stock after inspection (in Order UOM). This is the quantity that will create stock lots. Must be ≤ Delivered and ≤ Balance To Deliver.
Rejected	Yes	The quantity rejected due to damage, quality issues, or other reasons. Rejected = Delivered − Accepted. Rejected items do not enter stock.
Expiry	Yes	Expiry date for perishable or time-sensitive materials (e.g., chemicals, sealants, food items). This date is stored on the stock lot for expiry tracking.
Rejection Reason	Yes	Mandatory if any quantity is rejected. Select or enter the reason (e.g., "Damaged in transit", "Wrong specification", "Quality test failed").
Notes	Yes	Free-text notes for this line item (e.g., "Batch #A2045", "Stored in Zone B").
Putaway	Yes	The specific warehouse bin or location where this material will be physically stored (e.g., "Rack A-03", "Yard Section 2"). Dropdown populated from the warehouse location master.

Constraint: The Accepted quantity cannot exceed the Balance To Deliver. If the vendor delivers more than the PO balance, you must either amend the PO first or reject the excess quantity.

Partial deliveries: You don't need to receive all items in a single MRN. Uncheck items that were not delivered and create separate MRNs as additional deliveries arrive. The Balance To Deliver updates automatically after each MRN is approved.

Step 5: Add Other Charges (Optional)

The Other Charges section below the line items allows you to record additional costs associated with the delivery that are not part of the material unit price. Common examples include:

• Freight / Transportation charges
• Loading / Unloading charges
• Insurance
• Customs duty
• Handling fees

These charges are added to the MRN value and reflected in the finance voucher. They can be allocated proportionally across line items or assigned to specific items.

Step 6: Save the MRN

After filling in all required fields and entering quantities, click the Save button. The MRN is saved in Draft status. At this stage:

• No stock lots are created yet.
• No finance entries are generated.
• You can still edit all fields and quantities.
• The MRN appears in the list view with Draft status.

Step 7: Review the Checklist (If Configured)

Click the Checklist button to review any quality or compliance checklist configured for this material category. The checklist ensures that all inspection criteria have been evaluated before requesting approval. Complete all checklist items before proceeding.

Step 8: Request Approval

When you are satisfied with the MRN details, click Request Approval. This action:

• Changes the MRN status from Draft to Submitted.
• Sends a notification to the configured approver(s).
• Locks the MRN from further editing (unless returned for revision).

Approval routing: MRN approval is governed by the approval workflow configured in Administration → Approvals. Depending on your organization's setup, MRNs may require single-level or multi-level approval based on value thresholds.

Step 9: Approval Outcome

The approver reviews the MRN and takes one of the following actions:

Action	Result
Approve	MRN status changes to Approved. Stock lots are created: For each accepted line item, a new lot is created in omni_stock_lot with the material, quantity, rate, warehouse, putaway location, and expiry date. Stock transactions are posted: Positive quantity entries are created in omni_stock_transaction (type "MRN"), increasing the stock-on-hand. Finance voucher is generated: An accounting entry records the material receipt liability against the vendor. The approved_by and approved_on fields are stamped on the MRN header.
Reject / Return	MRN status changes to Rejected or reverts to Draft. No stock or finance entries are created. The storekeeper can revise the MRN and re-submit for approval.

What Happens After MRN Approval

Once an MRN is approved, the following system records are created automatically:

Bulk Upload MRN

For high-volume receipt scenarios (e.g., project mobilization, large shipments with many line items), you can use the Upload MRN feature to import MRN data from a spreadsheet.

1. Click Upload MRN in the toolbar.
2. Download the template file provided by the system.
3. Fill in the template with MRN header and line item details, following the column format exactly.
4. Upload the completed file.
5. The system validates the data (PO references, material codes, quantities) and creates MRNs in Draft status.
6. Review each generated MRN and submit for approval as normal.

Items in MRN (Post-Save View)

After saving, the Items In MRN section at the bottom of the form shows the finalized line items that have been recorded in this MRN. This section is read-only and reflects the saved data. It includes:

• Material code and description
• Accepted quantity (in stock UOM)
• Rate (from PO, converted to stock currency if applicable)
• Amount (Accepted Qty × Rate)
• Lot code (assigned after approval)

Cancelling an MRN

You can cancel a Draft MRN by opening it and clicking the Cancel button. This removes the MRN entirely. Only MRNs in Draft status can be cancelled — once submitted or approved, the MRN cannot be cancelled through the UI.

Tips & Best Practices