Received, Not Yet Billed
What happens between goods arriving and the vendor's bill — and how Trabalance keeps stock and the ledger honest across the gap.
Goods often arrive days or weeks before the vendor's invoice. In that gap you hold stock you have not been billed for — what accountants call Goods Received Not Invoiced (GRNI). Trabalance handles the gap without a clearing account: the Goods Received Note puts the quantity into stock on hand the day it arrives, and the bill created from it posts cost and the payable when the invoice comes. The GRN itself writes nothing to the ledger.
The list of Open goods received notes is your GRNI register.
The Problem, and How It Is Handled
When goods arrive on 28 February and the vendor's invoice arrives on 5 March:
- 28 February — GRN saved. Stock on hand rises by the received quantity as of that date. Inventory reports are right immediately. The ledger is untouched; Accounts Payable is untouched. The GRN is Open.
- 5 March — bill created from the GRN and saved. The ledger records the cost (or the inventory asset value), the recoverable tax and the payable. The bill does not add the stock a second time. The GRN becomes Matched.
What Each Document Changes
| Document | Stock on hand | Ledger | Status |
|---|---|---|---|
| Goods Received Note | Rises by the received quantity | No entry | Open |
| Bill converted from the GRN | Unchanged (already counted) | DR Inventory asset / expense, DR Purchases tax, CR Accounts Payable | Bill: Unpaid · GRN: Matched |
| Bill recorded without a GRN | Rises by the billed quantity (stock items) | Same journal | Bill: Unpaid |
| Account | Debit | Credit | Description |
|---|---|---|---|
| Inventory asset | 10,000.00 | — | Value of the goods that entered stock on the GRN |
| Purchases tax (recoverable) | 750.00 | — | Tax on the vendor invoice |
| Accounts Payable | — | 10,750.00 | Formal obligation to the vendor |
Net Effect After Both Steps
| Where | Movement | Final Effect |
|---|---|---|
| Stock on hand | + quantity (GRN, permanent) | Inventory quantity and weighted average cost are right from the day of receipt. |
| Inventory asset account | +10,000 (bill) | Ledger value of the stock, recorded when the bill is saved. |
| Purchases tax | +750 (bill) | Recoverable tax recorded. |
| Accounts Payable | +10,750 (bill) | Vendor is a creditor for the full invoiced amount. |
Between the two steps, inventory quantity is ahead of the ledger by the value of every Open GRN. That is expected — and it is exactly what you review before closing.
When an Open GRN Does Not Close
| Situation | Meaning | Action |
|---|---|---|
| GRN Open, no bill yet | Vendor invoice is in transit — normal for a few days to a couple of weeks | Monitor. Follow up with the vendor if overdue. |
| GRN Open, but a bill was recorded separately (not converted) | The bill added the stock again. Stock on hand is overstated and the GRN never matches. | Void the separate bill. Re-create it with More → Convert to → Bill from the GRN. |
| GRN recorded in error — goods returned or never arrived | Stock on hand is overstated. | Void the GRN. Stock returns to pre-receipt levels. |
| Very old Open GRN (30+ days) | Vendor may never bill, or the GRN was a duplicate. | Investigate. Void the GRN if goods were not actually received. |
Open Procurement → Goods Received Notes → Open before every month-end close. Each row is goods received with no cost or liability in the ledger yet. Classify each one: legitimate (bill pending) or erroneous (GRN to void). Only legitimate items carry forward.
Price Differences Between GRN and Bill
The GRN carries the rate from the purchase order so that the bill starts with the agreed price. If the vendor's invoice differs, change the rate on the bill before saving: the ledger records what the bill says, and the bill is what the vendor is paid against. There is no separate price-variance account — the difference between the PO price and the billed price is simply the cost that was actually posted, and the comparison is part of your three-way match.
Related
- Closing the gap: Billing a goods received note.
- What the receipt does record: Goods received notes.
- The comparison at the end of the chain: Tracking a bill — the Lifecycle panel.
- Period-end review: Period close.