How To Simplify Your GRNI Write-Off Process

 

A holographic projection above a tablet displays a network of symbols centred around 'automation, demonstrating how the integration of automation works in simplifying the GRNI write-off process.

 

It is not uncommon for businesses to receive goods that they have ordered prior to the supplier sending an invoice. When this occurs, the goods are often marked as ‘received’ and added to the business inventory accordingly. However, because an invoice has not been generated, the Account Payable (AP) department is not updated, so a ‘Goods Received Not Invoiced’ (GRNI) account is maintained to manage existing liabilities that have not been invoiced.

 

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The Problem Of GRNI In Manual Ap Workflows

A key element of the Accounts Payable workflow is the three-way match, in which the Purchase Order, invoice, and delivery note are compared to confirm they contain the same information. This is crucial to ensure that businesses are receiving the goods they have ordered at the price they have been quoted. The AP workflow aims to reconcile this information before payment is made to the supplier.

In AP departments that rely on manual invoice processing, carrying out the three-way match can be time-consuming and challenging. If the supplier doesn’t issue an invoice until after the goods have been delivered, the three-way match is impossible as the necessary documentation is missing.

While the GRNI may, in principle, be a useful tool for protecting the accuracy and integrity of your accounts, it can also create unnecessary waste and costs if not managed properly. Failure to manage the GRNI account can result in poor visibility of your business’s liabilities, which will, in turn, impact on audit control and relationships with suppliers.

A GRNI account can contain hundreds, or even thousands, of items, each of which must be painstakingly reconciled to multiple supplier accounts. Unsurprisingly, the process can be incredibly time-consuming and expensive, and increases the risk of human error.

How Ap Automation Can Simplify GRNI

By harnessing the power of artificial intelligence, AP automation can produce time-accurate GRNI reports, thereby eliminating human error and saving time and money. By implementing automated AP solutions, you can address the problem of GRNI in several ways:

1. Invoice Automation

Replacing ad-hoc invoicing with a standardised electronic system, results in invoices arriving far more quickly and eliminates the possibility of email copies going missing. As invoices will be received by the AP team promptly, three-way matching will be completed sooner, so fewer items will be recorded in the GRNI account.

2. Invoice Data Capture

AP departments that receive a high volume of invoices often find it hard to process them quickly enough if manually entering the data, so goods are more likely to be recorded as GRNI, even temporarily. Introducing an automated data capture service vastly reduces the time taken for invoice data to appear on SAP and means three-way matching can be completed more quickly. 

3. Statement Automation

GRNI reconciliation is also improved through statement reconciliation. By automatically matching scanned statements and assigning a status to each document, AP teams can provide copies to suppliers and ensure missing documents are received quickly to speed up the entire process. As new information is received, statements are automatically matched or re-matched, maintaining a more accurate status for each line on the invoice and reducing dependency on the GRNI account.

Contact Cogent Consulting To Find Out More

At Cogent Consulting, we offer a free, no-obligation virtual site visit so you can watch a live demonstration of our automated AP solutions and learn how it could help you to manage your GRNI account more effectively.

To arrange your product demonstration, please contact us today.

 

SAP Invoice Automation Guide - Cogent Consulting

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