Last updated: March 8th, 2024

Goods Received Not Invoiced (GRNI) Report in Sage 50

The Goods Received Not Invoiced (GRNI) account is a critical liability clearing account in Sage 50 that keeps track of the value of inventory that has been received but not yet invoiced. It's like a temporary holding area for your inventory until you get the invoice from your supplier.

Why is the GRNI Account Important?

The GRNI account is crucial for maintaining accurate financial records. Here's why:

• It helps you keep track of your inventory levels and costs
• It ensures that your liabilities are correctly recorded
• It prevents discrepancies between your inventory and accounts payable
• It helps you catch any errors or discrepancies early on

Without a GRNI account, you might end up with inventory that you've received but haven't accounted for in your financial statements. This can lead to all sorts of problems down the line, like overstating your profits or understating your liabilities.

How Does the GRNI Account Work?

When you receive goods from a supplier, you'll record them in your inventory system. But what happens if you haven't received the invoice yet? That's where the GRNI account comes in.

Here's a step-by-step breakdown of how it works:

1. You receive goods from a supplier and record them in your inventory system
2. You create a goods received note (GRN) to document the receipt of the goods
3. The value of the goods is debited to the GRNI account
4. When you receive the invoice from the supplier, you match it to the GRN
5. The value of the goods is then moved from the GRNI account to the accounts payable account

Sage 50 offers an automatic matching process that allows you to easily link purchase receipts or orders to the associated invoice. This helps streamline the process and reduce the risk of errors.

How to Perform Automatic Matching for Your GRNI Account

To keep your GRNI account up-to-date and accurate, you should perform automatic matching on a regular basis. Here's how to do it in Sage 50:

1. Go to Inventory > Periodic processing > Valuation > Accounting Interface
2. Make sure all purchase invoices are posted
3. Enter the following details:
   • Company Group or company
   • Received Not Invoiced Account in the Account Range RNI Reconciliation Process
   • Check the Define the Criteria box and click on the Criteria button
4. Click OK to run the automatic matching process

It's a good idea to run automatic matching for your GRNI account at least once a month. You can also do it more frequently if needed, like on a daily or weekly basis.

Tips for Managing Your GRNI Account

Here are some tips to help you manage your GRNI account effectively:

• Run automatic matching regularly to keep your account up-to-date
• Investigate any discrepancies or errors promptly
• Keep detailed records of all goods received and invoices received
• Communicate regularly with your suppliers to ensure timely invoicing
• Train your staff on the proper procedures for recording goods received and matching invoices

By following these tips and using Sage 50's automatic matching feature, you can ensure that your GRNI account is accurate and up-to-date.

Frequently Asked Questions

What happens if I don't use a GRNI account?

If you don't use a GRNI account, you risk having inventory that hasn't been properly accounted for in your financial statements. This can lead to inaccurate reporting and potential errors down the line.

How often should I run automatic matching for my GRNI account?

It's recommended to run automatic matching at least once a month. However, you can do it more frequently if needed, such as on a daily or weekly basis.

What should I do if I find a discrepancy in my GRNI account?

If you find a discrepancy in your GRNI account, investigate it promptly. Check your records to see if there was an error in recording the goods received or matching the invoice. If necessary, reach out to your supplier to resolve any issues.

Can I manually match invoices to goods received notes?

Yes, you can manually match invoices to goods received notes in Sage 50. However, using the automatic matching feature can save you time and reduce the risk of errors.

What happens to the GRNI account when I match an invoice?

When you match an invoice to a goods received note, the value of the goods is moved from the GRNI account to the accounts payable account. This ensures that your liabilities are accurately recorded and your GRNI account balance is updated.

By understanding how the GRNI account works and following best practices for managing it, you can ensure that your financial records are accurate and up-to-date. With Sage 50's automatic matching feature, you can streamline the process and save time and effort.