Goods Receiving
MINECORP VEHICLE SOLUTIONS PTY LTD
PRONTO PROCEDURES
End of Month Procedures
Goods Received Not Invoiced (GRNI) Reconciliation
The objective of this write up is to highlight the importance of monthly review and reconciliation on GRNI. Some common problems and solutions will be discussed here.
GRNI- Definition
GRNI is an acronym for Goods Received Not Invoiced. A GRNI reconciliation or report has details that support the GL balance in the accounts that represents those receipts of materials, both inventory and non inventory as well as services, that an organisation has not yet entered an A/P invoice for.
What get posted in GRNI ?
Receipts and returns, invoices and credit notes against purchase orders flow through GRNI tracking. In essence, GRNI is a clearing account to record accrual and reversal of materials and services received by the organisation, but the invoice (or credit note for returns) hasn’t been posted into the system.
GST, goods and services tax are not captured via GRNI as they will be posted together with the invoices and credit notes.
Illustration -1
A purchase order – PO number 101234 has been created for 2 quantity of Bull Bars @ $1,200.00. The expense was coded to Inventory GL account as Bull Bar is a stock item (for other expenses, it may be coded to fixed assets or direct expenses).
Upon goods receipting in Pronto, it will post the following GL entries
DR : Stock On Hand ( 1-1400 ) - $2400.00
CR : AP Accrual Inventory(2 -1210) - $2400.00 (with PO reference 101234)
When the AP invoice is posted, it will post the following GL entries
DR : AP Accrual Inventory(2 -1210) - $2400.00 (with PO reference 101234)
DR : GST Paid (2-1330) - $240.00
CR : Trade Creditors (2-1200) - $2,640.00
The net balance in AP Accrual Inventory for PO reference 101234 is now zero.
Illustration -2
A purchase order – PO number 101789 has been created for 2 quantity of Fire Extinguisher @ $104.50. The expense was coded to
PRONTO PROCEDURES
End of Month Procedures
Goods Received Not Invoiced (GRNI) Reconciliation
The objective of this write up is to highlight the importance of monthly review and reconciliation on GRNI. Some common problems and solutions will be discussed here.
GRNI- Definition
GRNI is an acronym for Goods Received Not Invoiced. A GRNI reconciliation or report has details that support the GL balance in the accounts that represents those receipts of materials, both inventory and non inventory as well as services, that an organisation has not yet entered an A/P invoice for.
What get posted in GRNI ?
Receipts and returns, invoices and credit notes against purchase orders flow through GRNI tracking. In essence, GRNI is a clearing account to record accrual and reversal of materials and services received by the organisation, but the invoice (or credit note for returns) hasn’t been posted into the system.
GST, goods and services tax are not captured via GRNI as they will be posted together with the invoices and credit notes.
Illustration -1
A purchase order – PO number 101234 has been created for 2 quantity of Bull Bars @ $1,200.00. The expense was coded to Inventory GL account as Bull Bar is a stock item (for other expenses, it may be coded to fixed assets or direct expenses).
Upon goods receipting in Pronto, it will post the following GL entries
DR : Stock On Hand ( 1-1400 ) - $2400.00
CR : AP Accrual Inventory(2 -1210) - $2400.00 (with PO reference 101234)
When the AP invoice is posted, it will post the following GL entries
DR : AP Accrual Inventory(2 -1210) - $2400.00 (with PO reference 101234)
DR : GST Paid (2-1330) - $240.00
CR : Trade Creditors (2-1200) - $2,640.00
The net balance in AP Accrual Inventory for PO reference 101234 is now zero.
Illustration -2
A purchase order – PO number 101789 has been created for 2 quantity of Fire Extinguisher @ $104.50. The expense was coded to