What is GRNI (goods received not invoiced)? Definition, example, and journal entry
Accounts payable and procure-to-pay
GRNI (goods received not invoiced) is an accrued liability for goods or services received but not yet invoiced by the supplier, recorded so expenses and inventory land in the right period. It's a current liability, usually reported inside accrued liabilities rather than accounts payable, and it moves to accounts payable once the supplier's invoice is recorded.
- Account type
- Accrued liability
- Normal balance
- Credit
- Financial statement
- Balance sheet
- Moves to
- Accounts payable
Is GRNI a liability or an accrual?
GRNI is both: an accrued current liability with a normal credit balance. It isn't accounts payable, because no invoice exists yet.
Airgain's Form 10-K for fiscal 2025, filed with the SEC on February 26, 2026, reports goods received not invoiced of $775 thousand at December 31, 2025, up from $31 thousand, within accrued liabilities and other of $1,790 thousand.
GRNI journal entries
To record GRNI, debit inventory or expense and credit GRNI when goods arrive, then debit GRNI and credit accounts payable when the matching invoice is recorded.
Use one method only. Many ERPs post GRNI at receipt and clear it at invoice. Otherwise, you accrue on the last day of the month and reverse on day one with reversing entries. Using both double counts the cost.
SAP calls the account GR/IR clearing, and NetSuite posts item receipts to Accrued Purchases. QuickBooks Online posts to A/P only when you enter a bill, so GRNI there is usually a manual journal entry.
GRNI example
Northwind Tools receives 500 units at $12 on PO 7720 on Friday, October 30, 2026, and the invoice arrives Tuesday, November 3. Its ERP posts GRNI at receipt, under perpetual inventory. All amounts are illustrative.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Oct 30, 2026 | Inventory | 6,000 | |
| GRNI (accrued liability) | 6,000 | ||
| Nov 3, 2026 | GRNI (accrued liability) | 6,000 | |
| Accounts payable | 6,000 | ||
| Nov 3, 2026 | GRNI (accrued liability) | 400 | |
| Inventory | 400 | ||
| Dec 3, 2026 | Accounts payable | 6,000 | |
| Cash | 6,000 | ||
| Total | 18,400 | 18,400 |
On the October 31 balance sheet, this supplier shows $0 of accounts payable and $6,000 of GRNI. You pay on day 30 of net 30 terms; the $400 entry clears a stale line, explained below.
| GRNI reconciliation, October 31, 2026 | Received | Days open | Amount |
|---|---|---|---|
| PO 7720, tools | Oct 30, 2026 | 1 | $6,000 |
| PO 7695, packaging | Oct 9, 2026 | 22 | 12,000 |
| PO 7310, replacement parts | Jul 28, 2026 | 95 | 400 |
| Open receipts report total | $18,400 | ||
| General ledger GRNI account | $18,400 | ||
| Difference | $0 |
How do you reconcile the GRNI account?
You reconcile GRNI by matching the open receipts report, line by line, to the GRNI balance in the general ledger, then aging each line from its receipt date.
Age lines 0–30, 31–60, 61–90, and over 90 days, and investigate anything over 60.
What do you do with old GRNI balances?
You clear an old GRNI line only after you confirm why no invoice came, and the offset usually goes back to the account the receipt debited, not to other income.
Causes include a lost invoice, failed match, duplicate receipt, return, or free goods. In the example, the supplier confirms on November 3 that the 95-day line was free replacement parts, so with controller approval you credit inventory $400 (cost of sales instead if the parts were already used).
What is GRNI confused with?
GRNI is most often confused with accounts payable, accrued expenses, the goods receipt itself, and unrecorded liabilities.
| Term | What it is | How it differs from GRNI |
|---|---|---|
| Accounts payable (AP) | Money a company owes suppliers for goods or services received on credit, recorded as a current liability until paid | Invoiced; GRNI isn't invoiced yet |
| Accrued expenses | Expenses incurred in a period but not yet paid or invoiced, recorded as a liability so costs land in the period they belong | Broader: payroll, interest, and services with no PO or receipt |
| Goods receipt | Record confirming that ordered goods have arrived and were checked, used to update inventory and support matching against the invoice | The document; GRNI is the balance it creates |
| Unrecorded liabilities (search for) | Obligations that exist at period end but were never booked; auditors search for them by testing later payments and unpaid invoices | What you get when GRNI is missed |
Is GRNI:
PO goods or services received by period end with no supplier invoice recorded
Is not GRNI:
Invoiced bills, payroll and interest accruals, and goods ordered but not yet received
Quick test: if it arrived and the bill hasn't, it's GRNI.
GRNI at month end
At month end, you confirm every uninvoiced receipt is in GRNI and the balance ties, as part of the month-end close.
- Cutoff: Post every receipt dated on or before the last day of the month
- Accrue the gaps: Add anything received without a system receipt
- Tie out: Match the open receipts report to the GL
- Clear stale lines: Resolve lines over 90 days with evidence
For FP&A, state whether payables days include GRNI. Innospec's fiscal 2025 Form 10-K, filed February 18, 2026, reports "creditor days (including goods received not invoiced)," up from 44 to 58 days in its Fuel Specialties segment. Our Close Agent prepares AP accruals as close tasks, and nothing posts until a named approver signs off.
Common GRNI mistakes
The most common GRNI mistakes are misclassifying the account and misreading its balance.
- Calling GRNI a contra account: It's an accrued liability with a credit balance
- Posting GRNI to the AP control account: The AP aging then can't tie to the ledger
- Ignoring a debit balance: It usually means invoices posted before receipts, not a negative liability
- Skipping GRNI under periodic inventory: You still accrue what was received at period end