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Procurement / Purchase Order Processing

Standard GP Purchase Order Processing (POP) module — purchase orders, vendor management, goods receipt, GRNI accruals, and AP integration.

GP Series: Purchasing Source: GP Tech Support SOP Documents / GP Functional Module SOPs
Active GP Series: Purchasing GRNI Reconciliation AP Integration

Module Profile

Module
Purchase Order Processing (POP)
GP Series
Purchasing
Description
Standard GP POP module — full purchase order lifecycle from requisition to receipt and AP invoice matching
Vendor Management
Vendor master records, payment terms, purchase addresses maintained in GP
AP Integration
Receipts generate GRNI accrual entries; AP invoices match and clear GRNI on posting
Inventory Integration
Goods receipt against PO updates Inventory on-hand quantities and costs

Purchase Order Lifecycle

1. Purchase Order Creation
PO raised in GP — vendor, items, quantities, delivery details
→
2. Vendor Order / Confirmation
PO sent to vendor — confirmation received
→
3. Goods Receipt (Receiving)
Goods received in GP POP — inventory updated, GRNI accrual created
→
4. AP Invoice Matching
Vendor invoice matched to PO / receipt in AP (via Docuphase)
→
5. GRNI Cleared / AP Posted
GRNI accrual cleared; AP invoice posted to GL

Sub-Module Summary

Purchase Orders
Standard and blanket purchase orders raised in GP POP. Vendor, item, quantity, cost, and delivery terms captured at PO creation.
Vendor Management
Vendor master records, payment terms, remittance addresses, and purchasing defaults maintained in GP. Linked to AP for payment runs.
Receipts (Goods Receipt)
Physical receipt of goods posted against PO in GP. Triggers inventory quantity update and GRNI accrual in GL.
GRNI
Goods Received Not Invoiced accruals — created on goods receipt, cleared when matching AP invoice is posted. Reconciled monthly.
AP Integration
POP receipts feed into AP invoice matching via Docuphase. GRNI cleared when AP invoice posted. AP aging and GL AP control must reconcile at month-end.
GRNI (Goods Received Not Invoiced) is the accrual account representing goods that have been physically received into inventory but for which the supplier invoice has not yet been posted to AP. The GRNI balance must be reconciled and cleared monthly as part of the period-close process.

GRNI Overview

Full Name
Goods Received Not Invoiced
Account Type
GL accrual / liability account
Created By
Goods receipt posted against a PO in GP POP
Cleared By
Matching AP invoice posted in GP (via Docuphase)
Reconciliation
Monthly — GRNI balance reconciled and aged items investigated
SOP Coverage
4 dedicated SOPs for GRNI issues (see SOPs tab)

GRNI Flow

Goods Receipt Posted
Inventory ↑ / GRNI accrual ↑ in GL
→
GRNI Outstanding
GRNI sits as liability until invoice received
→
AP Invoice Posted (Matched to Receipt)
GRNI accrual ↓ / AP liability ↑
→
GRNI Cleared
GRNI balance = zero for this receipt

GRNI Monthly Reconciliation

At month-end, the GRNI balance in GL must be reconciled to the GP GRNI report. Any outstanding GRNI items must be investigated and either cleared (invoice posted) or accrued.

GRNI Reconciliation Steps
  1. Run GRNI report from GP POP — lists all open receipts without matching AP invoice
  2. Compare GRNI report total to GL GRNI accrual account balance
  3. Investigate any discrepancies — refer to SOP_GRNI Mismatch.docx
  4. For aged items (30+ days) with no invoice — chase vendor or create accrual journal
  5. For items incorrectly not clearing — refer to SOP_GRNI Not Cleared.docx
  6. For accrual amount discrepancies — refer to SOP_Accrual Incorrect.docx
  7. For inventory quantity discrepancies — refer to SOP_Inventory Mismatch.docx
  8. Clear all resolved items before period lock
Month-End Dependency: GRNI reconciliation is a prerequisite for GL period close. An unreconciled GRNI will cause the GL AP control account to not balance.
SOP Base Path: assets/docs/GP Tech Support SOP Documents/GP Functional Module SOPs/

Procurement / GRNI SOPs

SOP: GRNI Mismatch Critical
File
SOP_GRNI Mismatch.docx
Trigger
GRNI report total does not match GL GRNI accrual account balance — discrepancy between POP sub-ledger and GL
Impact
Financial statements overstated/understated; period close cannot be completed until resolved
Common Causes
Posting failures, backdated transactions, unmatched receipts, manual GL journals incorrectly affecting GRNI account
Download SOP
SOP: GRNI Not Cleared High
File
SOP_GRNI Not Cleared.docx
Trigger
An AP invoice has been posted and matched to a PO/receipt in GP but the GRNI accrual has not been cleared
Common Causes
Invoice not properly matched to receipt in GP, posting configuration issue, partial receipt/invoice mismatch
Download SOP
SOP: Accrual Incorrect High
File
SOP_Accrual Incorrect.docx
Trigger
GRNI accrual amount does not match the expected value — price variance, quantity variance, or currency rounding
Common Causes
PO price differs from invoice price, partial receipt vs full invoice, FIFO cost layer issues
Download SOP
SOP: Inventory Mismatch High
File
SOP_Inventory Mismatch.docx
Trigger
Inventory on-hand quantity or value in GP does not match physical stock count or expected value after receipt
Common Causes
Receipt posted incorrectly, FIFO cost layer issue, PanatrackerGP scan discrepancy, inventory adjustment error
Related Modules
Inventory module, PanatrackerGP — cross-check with warehouse team
Download SOP

SOP Quick Reference

Symptom / Trigger SOP to Use Priority
GRNI report total ≠ GL GRNI account balance SOP_GRNI Mismatch.docx Critical
AP invoice posted but GRNI accrual still outstanding SOP_GRNI Not Cleared.docx High
GRNI accrual amount is wrong (price / quantity variance) SOP_Accrual Incorrect.docx High
Inventory on-hand quantity/value incorrect after receipt SOP_Inventory Mismatch.docx High