Balancing RNI Report to GL
April 17 |
Dynamics GP – Balancing RNI Report to GL
First let’s look at how the Received Not Invoiced Report works:
(Information for: Balancing RNI Report to GL is taken from Microsoft Support document: https://support.microsoft.com/en-us/help/951236/information-about-why-the-values-on-the-received-not-invoiced-report-m
Records will appear on the Received/Not Invoiced report if the receipt of the goods is posted through transactions that are entered in the Receiving Transaction Entry window. The records will no longer be displayed on the report after the invoice is matched to the receipt and then saved.
NOTE: Posted and unposted invoices will affect the receipts printed when you print the Received/Not Invoiced report. What this means is once you have saved an invoice against a receipt, that receipt if fully applied will not be on the report.
However, if the invoice is not posted, it will not be in the GL yet. So, they will not match the value of the accrued purchases account in the General Ledger.
Note: All Purchasing Invoices should be Posted prior to reconciling the RNI report to the GL.
Posting to Accrued Purchases directly in GL.
Another reason that you might not reconcile is when transactions are entered directly in General Ledger for the accrued purchases account. Any transactions entered manually to the General Ledger will not print on the Received/Not Invoiced report.
Review all unmatched Invoices showing on the RNI. If you have items showing on your report that you know are invoiced, check to see if the Invoice was entered directly in Payables instead of using the Enter Match in Purchasing. Follow this link for instruction on clearing these transactions from the RNI report.
If you do find that an invoice was entered directly in Payables, review the GL distribution used. What was the offset and did it possibly cause a double posting to one or more Inventory accounts instead of offsetting the Accrued Payables account.
If so, you might need to enter a Journal Entry in the General Ledger to correct.
Reconciling the RNI to the General Ledger Accrued Payables Account:
Balancing RNI Report to GL: If you use a three-way match, the first step is having a specific company policy regarding when to receive, invoice and close a PO.
Best business process should be
- Issue PO
- Receive Line Items for PO
- Enter Match Invoice
- Another option is to use Shipment/Invoice where you Receive and Invoice at the same time.
- Once all line items are Received and Matched, then Close PO
If you have invoices that were closed prior to receiving or invoicing, they will need to be cleaned up.
You will need to review all your Open PO’s. Close all completed POs where invoices have been received and entered.
Print the RNI report and adjust the GL balance to match the report.
Once you are in balance you should check the balance daily at least initially. Doing this you can identify anyone that is not following the proper procedures to closing PO’s following your company policy.
Note: If you track Landed Costs, you will also need to match Landed Cost Invoices to the POs prior to closing the PO.
Here are two ways to look at Received Not Invoiced.
- 1 -Print the Received/Not Listed Report:
- Go to Purchasing | Reports | Analysis |
- Choose Received/Not Invoiced. Select the options and Print.
- 2 – SmartList: Go to SmartList – Purchasing – Receivings Line Items – Shipments Received but not Invoiced*
From here, if you have a question regarding one of the lines listed on the SmartList – double click on that line.
Receivings Transaction Inquiry Zoom will open to that Shipment Receipt for you to review.
Then if you click on the icon highlighted above it will show the Remaining Shipments to Match for that Line Item.
If you click on the Distributions button for the Shipment it will show you the accounts that it posted to, including the Accrued Purchases Account.
Make sure that all your Accrued Purchases are being posted correctly to the Accrued Purchases Account.
The RNI will show any PO lines that have been received not invoiced no matter what GL account they have been posted to. Make sure you include all GL accounts being used if you have any Vendor Classes or Vendor Cards that are posting to a different GL account.
Balancing RNI Report to GL – Accrued Purchases Account Setup
Verifying your Company default Accrued Purchases Account: Administration | Setup | Posting | Posting Accounts
Choose to Display the Purchasing Series and verify the Accrued Purchases Account is defined.
This account can be set up by Vendor Class: This will be a default for any Vendor created with this class.
This account can also be modified to a different account under the Vendor Card – Vendor Account Maintenance window.
When Reconciling the Items listed on the RNI and the total amount on the RNI back to the General Ledger, make sure that you are including all GL Accounts being posted to including all set up options, including at the Vendor Level.
If you have any questions regarding reconciling the RNI Report or SmartList to the General Ledger, contact us at: support@isolutionspartners.com
See our previous articles at: https://www.isolutionspartners.com/articles/
