Goods received not invoiced account is in debit

1

Hi all,

My first post so thank you in advance.

The goods received not invoiced account is notionally a credit account. Can anyone tell me of conditions that would cause the goods received not invoiced account to be in debit.

Regards

BW

2

Can you explain where this account is ?

Goods Received - only records the movement of inventory, it doesn’t create an accounting transaction until the Purchase Invoice is processed

3

Thank you for your reply

Hopefully I can better explain myself

“goods received not invoiced” is a separate account that is used when goods are received into inventory without an invoice - (denoting a future liability)

This account is typically nullified when the invoice is entered. -(IE becomes a current liability)

Goods received no invoice
Dr Cr
Inventory $100 0
GRNT 0 $100

Invoice entered
GRNI 0 0
Acc Pay $100 0

I am looking for conditions that would cause GRNI account to be in debit.

Perhaps:
Variances in prices on purchases order and invoice
Credits

Thanks

BW

4

It would never go into debit because your posting to it would nullify the previous entry as it is only acting as a clearing account. Any variations to the original values would be taken up via an extra line entry on the Purchase Invoice which would adjust the previous inventory entry.

5

That is what I thought but with respect this is not correct as it actually has happened.

Does not make sense, hence my question.

Clearly an error has been made

The only significant operational change has been that new personnel have been employed in the AP area.

All other procedures have remained unchanged for more than 12 mths.

Thanks again

BW

6

Yes, looks like there’s going to be the joy of an account reconciliation coming up for some lucky individual.

7

Reasons for GRNI differences:
Invoice recorded before goods receipt
Invoice quantity, goods receipt quantity mismatch
Invoice price, purchase order price mismatch