GRNI balances and the cut-off stories they tell

GRNI is meant to be temporary. When the balance climbs month after month, either invoices are late, receipts are premature, or clearing journals are papering over both. Each story has a different fix.

Before close, reconcile the largest GRNI lines to open purchase orders and expected invoice dates. Ask suppliers for status on delayed invoices rather than accruing forever. Where receipts were booked early, reverse and rebook with evidence — do not leave a permanent plug.

Auditors sample GRNI because it sits at the junction of inventory, expense, and payables. A short cut-off memo that explains movements and lists uncleared items over a threshold saves days of fieldwork queries.

If your team cannot explain the top ten GRNI lines in under an hour, schedule a period-end settlement check before the next year-end, not after.

Discuss a review for your AP close More insights