GRNI (Goods Received Not Invoiced)
GRNI stands for Goods Received Not Invoiced. It refers to inventory or goods that have been physically received by a company but for which no vendor invoice has yet arrived. GRNI represents a liability that must be accrued at period-end for accurate financial reporting.
Why GRNI Matters
When you receive goods but haven’t received the invoice: - You own the inventory (asset on your books) - You owe the vendor (liability, even without invoice) - Matching principle requires recognizing the expense when goods are received - Financial statements would be misstated without GRNI accrual
The GRNI Problem
Day 1: Goods arrive at warehouse → Recorded as received Day 5: Invoice arrives from vendor → Recorded in AP Day 1-5: GRNI exists (goods received, no invoice)
At month-end, if the invoice hasn’t arrived, you must accrue the liability.
GRNI Journal Entry
When goods are received (before invoice):
| Account | Debit | Credit |
|---|---|---|
| Inventory | $10,000 | |
| GRNI Accrual (Liability) | $10,000 |
When invoice arrives:
| Account | Debit | Credit |
|---|---|---|
| GRNI Accrual | $10,000 | |
| Accounts Payable | $10,000 |
GRNI vs Related Concepts
| Term | Meaning | Timing |
|---|---|---|
| GRNI | Goods received, no invoice | Receipt → Invoice |
| In-Transit | Goods shipped, not received | Shipment → Receipt |
| Accrued AP | Services received, no invoice | Service → Invoice |
| Prepaid | Paid before receipt | Payment → Receipt |
GRNI Report
A GRNI report shows all receiving documents without matched invoices:
| Receipt # | Date | Vendor | Items | Est. Value | Days Open |
|---|---|---|---|---|---|
| RCV-1234 | 12/20 | ABC Supply | 100 units | $5,000 | 15 |
| RCV-1235 | 12/22 | XYZ Parts | 50 units | $2,500 | 13 |
| RCV-1236 | 12/28 | ABC Supply | 200 units | $8,000 | 7 |
| Total | $15,500 |
Month-End GRNI Process
Step 1: Run GRNI Report
Generate list of all open receiving documents without matched invoices.
Step 2: Estimate Values
Use PO prices or historical costs to value unmatched receipts.
Step 3: Create Accrual
Book GRNI accrual journal entry for estimated liability.
Step 4: Reverse Next Period
Reverse the accrual at the start of the next period.
Step 5: Match When Invoice Arrives
Clear GRNI when actual invoice is received and matched.
Common GRNI Issues
| Issue | Cause | Impact |
|---|---|---|
| Stale GRNI | Invoice never coming | Overstated liability |
| Wrong estimate | PO price differs from invoice | Variance at match |
| Missing receipt | Goods received but not logged | Understated GRNI |
| Duplicate receipt | Same goods logged twice | Overstated GRNI |
Reducing GRNI
Best practices to minimize GRNI:
- Request invoices with shipment - Ask vendors to include invoice in package
- Set up EDI - Receive electronic invoices automatically
- Expedite AP processing - Match invoices quickly when received
- Follow up on old GRNI - Contact vendors for missing invoices
- Require invoice within X days - Contract terms for invoice timing
GRNI Aging
Track how long items have been in GRNI status:
| Aging Bucket | Amount | Action |
|---|---|---|
| 0-30 days | $15,000 | Normal - monitor |
| 31-60 days | $5,000 | Follow up with vendor |
| 61-90 days | $2,000 | Escalate |
| 90+ days | $500 | Investigate, possibly write off |
System Handling
ERP Systems
Most ERPs track GRNI automatically: - Receipt creates GRNI entry - Invoice match clears GRNI - Reports show open GRNI by vendor/age
Manual Tracking
Without automation: - Maintain spreadsheet of receipts - Check against invoices received - Calculate accrual manually
Related Terms
- Three-Way Matching - Matching PO, receipt, and invoice
- Accrued Expenses - Expenses incurred but not yet billed
- AP Aging - Report of outstanding payables
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