Cold Storage Inventory Management: GRN, GDN, Lot Tracking and FEFO (2026 Guide)

Cold storage inventory management: GRN, GDN, lot tracking and FEFO

A cold storage holds other people's goods, by lot, against the clock. Most inventory software assumes you bought what you stock. Here's how cold storage inventory actually works and what your system needs to do.

D By Dravyaa Team October 21, 2026 8 min read

In short

A cold storage's stock belongs to its depositors, so the core record is an inward and outward register by depositor and by lot, not a purchase cycle.

Inward goods are booked on a goods received note (GRN) without a purchase order; outward goods leave on a goods delivery note (GDN).

Each line needs lot number, variety, count and weight, as well as quantity, because that's how depositors and buyers identify goods.

Dispatch should follow first-expiry-first-out (FEFO), so the lot that expires soonest leaves first.

Cold storages handling food need an FSSAI licence or registration. Those issuing warehouse receipts register with WDRA and issue electronic negotiable warehouse receipts (e-NWRs).

Cold storage inventory management means keeping an exact, live record of whose goods are in the store, in which lot, how much, and until when, from the moment a truck is received to the moment goods leave on a delivery note. Getting it wrong costs twice: goods released to the wrong party, and stock that expires in the chamber because a newer lot was shipped first.

How is cold storage inventory different?

How cold storage inventory differs from manufacturing inventory
	Manufacturer or trader	Cold storage
Who owns the stock	You	Your depositors
How goods come in	Purchase order → GRN → bill	Direct GRN when the depositor arrives
How goods go out	Sales invoice or challan	Goods delivery note, on the depositor's instruction
What identifies goods	Item and quantity	Depositor, lot, variety, count, weight and quantity
Main risk	Stockouts and dead stock	Releasing the wrong lot; expiry in the chamber

What should a cold storage GRN capture?

The depositor, date and vehicle
For each line: item, lot number, variety, count, weight and quantity
Expiry or best-before date, where the goods have one
A serial number in your own format, for example PREFIX/GRN/2026-27/OCT/0001
Your receiving terms, printed on the slip the depositor takes away

The GRN adds stock as soon as it's saved. It shouldn't post an accounting entry: storage charges are billed separately, and the goods aren't yours.

What is a goods delivery note (GDN)?

A GDN is the outward document. It records what left the store, to whom, from which lot and in what quantity. It reduces stock when the goods are actually delivered, not when it's drafted, so a cancelled pickup doesn't leave a hole in the register.

Why does FEFO matter in cold storage?

FEFO (first expiry, first out) means the lot that expires soonest is dispatched first, whatever order the lots arrived in. FIFO (first in, first out) works when shelf lives are uniform. In a cold store, where a lot that arrived later may expire sooner, FEFO is what prevents write-offs. Software should suggest the FEFO lot on every GDN, warn when someone picks another, and refuse to ship more than a lot holds.

What registrations apply to a cold storage in India?

FSSAI. A cold storage that stores food is a food business. It needs FSSAI registration or a state or central licence, depending on turnover and scale, applied for on the FoSCoS portal.
WDRA. The Warehousing Development and Regulatory Authority registers warehouses, including cold storages, that issue negotiable warehouse receipts. Registered warehouses issue them electronically (e-NWRs) through a WDRA-registered repository. Depositors can then pledge the receipt for a loan.
GST. Storage and warehousing services are taxable. Check the rate for your commodity, as storage of some agricultural produce is exempt.

Thresholds and categories change, so confirm them on the FSSAI and WDRA portals for your own facility.

What should you look for in cold storage software?

GRN without a purchase order, against a depositor
Lot, variety, count and weight on every line, and on the printout
Your own document numbering and terms
Batch-wise expiry with FEFO suggestions on dispatch
Live stock by depositor, item and lot
A record of who created or changed each slip, and when
Billing and accounts that don't double-count stock movements

How Dravyaa handles cold storage

Dravyaa has a cold storage mode, switched on per business. It adds direct GRNs without a purchase order, goods delivery notes, lot, variety, count and weight fields, document numbering by financial year and month, and printed GRN and GDN terms. With batch tracking on, each GRN line becomes a batch with its expiry date, and the GDN pre-selects the batch that expires first. See it in practice in our cold storage case study, or on the inventory and warehouse page.

Frequently asked questions

What is cold storage inventory management?

It is keeping a live record of whose goods are in a cold store, in which lot, in what quantity and until what date, from the goods received note when they arrive to the goods delivery note when they leave.

What is the difference between a GRN and a GDN?

A goods received note (GRN) records goods coming into the store and adds stock. A goods delivery note (GDN) records goods leaving the store and reduces stock when they are delivered.

What is FEFO in cold storage?

FEFO stands for first expiry, first out: the lot with the earliest expiry date is dispatched first, regardless of when it arrived. It prevents goods from expiring in storage.

Does a cold storage need an FSSAI licence?

A cold storage that stores food is a food business and needs FSSAI registration or a licence. The category depends on turnover and scale; apply and confirm the current thresholds on the FoSCoS portal.

What is an e-NWR?

An electronic negotiable warehouse receipt, issued by a WDRA-registered warehouse through a registered repository when it receives a depositor's goods. Being negotiable, it can be transferred or pledged for a loan.