Goods Received Not invoiced ( GRNI )

[Former Member]

Hello Experts !!!

Whenever i enter details in Goods receipt PO,the journal entry which is passed has a account called " Goods Received Not Invoiced " which is debited. What is significance of that account . why it is used .

Please Experts help me .

Regards

A S Vamsi Krishna

[former_member1269712 · Accepted solution]

Hi Krishna,

Goods Received Not invoiced ( GRNI ) - A record in the accounting system that says that some goods have been received, probably matched to a purchase order, but there is no corresponding invoice. For most goods and services, the invoice is the last thing to arrive before a 3-way match so every transaction (or the vast majority) will appear on a GRNI report at some stage. It becomes an issue when an invoice does not appear in a timely fashion after the receipt of goods. The absence of an invoice months or even years after the receipt of goods indicates a problem of some sort and very high GRNI figures points to a probable systematic problem with the purchase to pay process and if left unchecked can lead to non-trivial accounting adjustments that will draw the attention of the auditors.

Thanks

Sachin

[Former Member]

I got It

[Former Member]

Hi Vamsi......

If you know about contra or allocation account. GRNI is one of that.

As you know SAP has some standard procedure to follow the purchase process.

PO which is non accounting and not legal document which is only used to give the order to supplier.

Based on PO, GRPO is raised. Because of GRPO Stock gets In. So here accouting entry must pass.

In this GRN Entry ashould be passed where Stock Account gets Debited and GRNI account gets credited which will then be credited at the time of invoice where creditors outstanding will be generated.

In short your accounting would be Suplier--> Credit

Stock--> Debit

Tax--> Debit (if any)

Hope you understood the concept.....

Regards,

Rahul

[Former Member]

Hello Vamsi Krishna,

If you search forum, this question has been asked for quite a few times. For example:

Thanks,

Gordon