Goods Received Not Invoiced (GRNI): Reconciling Accrued Liabilities
Goods Received Not Invoiced (GRNI) is one of the most persistent challenges in accrual-based accounting for manufacturers. If left unmanaged, it can distort your liabilities and delay period close. This guide breaks down how to handle GRNI in a real-world ERP environment.
What Is GRNI and Where Does It Show Up?
GRNI is a temporary accrued liability created when inventory is received but has not yet been matched to an accounts payable (A/P) voucher. It shows up on the balance sheet as an accrued expense and affects the timing of cost recognition in COGS. Until the vendor invoice is vouchered, the cost is held as a liability—critical for accrual-based accuracy.
Accounting Risks and Errors with GRNI
Common pitfalls include:
- Duplicate accruals from manual entry
- Missed reversals when vouchers are delayed
- Incorrect GL account mappings that misstate liabilities
These issues can result in overstated liabilities, inaccurate COGS, and delayed closes. One example: a plant that received high-value parts in late Q4 but never matched the receipt to an invoice. The GRNI lingered, inflating liabilities and throwing off year-end reports.
How ERP Systems Like Cetec Track GRNI
Cetec ERP posts goods receipts directly to an accrued liability account. When the voucher is entered, the system reverses the accrual and logs the payable. Users can locate GRNI exposure through reports listing open receipts with no matching vouchers. The system also offers audit trails linking receipts to vouchers, giving accounting teams clear traceability across the transaction lifecycle.
How to Reconcile GRNI Efficiently Each Month
A repeatable GRNI reconciliation process includes:
- Generate an open receipt report filtered by date, vendor, or PO.
- Compare against received POs.
- Match vouchers to receipts.
- Investigate unmatched items and adjust if needed.
In Cetec ERP, accounting teams can schedule reports, apply filters, and attach notes or justifications to entries. Pair this with an approval cadence for voucher entry to keep liabilities current and auditable.
Key Takeaways:
- GRNI is a temporary liability requiring precise tracking.
- ERP visibility is essential for proper accrual accounting.
- Regular reconciliation prevents financial misstatements.
Conclusion
Accurate GRNI handling is key to clean month-end financials. With an ERP that maps transactions in real-time, your accounting team can stay on top of liabilities without manual workarounds. Cetec ERP gives you visibility and control over your accrued liabilities.
Looking for a list of unvouchered receipts? Learn more about the Receipt List.