Definition
Goods received not invoiced (GRNI) is a liability account that records the value of goods you have received from suppliers but haven't yet been invoiced for.
What is goods received not invoiced used for?
When stock arrives, it’s added to inventory and the matching credit goes to GRNI, because you owe the supplier even though no invoice exists yet. When the invoice is recorded, GRNI is cleared and the amount moves to accounts payable.
Goods received not invoiced
ExampleDebit
- Supplier invoice recordedUSD 18,000
TotalUSD 18,000
Credit
- Goods receipt postedUSD 18,000
TotalUSD 18,000
Balance after the invoice: nil. The receipt's other side is Inventory; the invoice's is Accounts payable.
A GRNI balance that keeps growing usually means invoices are missing, receipts were recorded wrongly or prices are in dispute. Full explanation: goods received not invoiced (GRNI): what it is and how to keep it clean.