Sometimes, you may receive excess quantities from the supplier either as samples or FOC. Or the supplier may have accidentally oversupplied you with the stock.

The supplier’s invoice is however only for the quantity you ordered.

For example, in your Purchase order, you ordered 100, the supplier supplied you with 110 and the invoice is for 100.

In Sap Business one, if you book the Goods Receipt PO, the entries will be;

GRN (Goods Received Not Invoiced)

• Stock Account will be debited by 110
• GRNI Account will be credited by 110

A/P Invoice

• GRI Account will be debited by 100
• Supplier account will be credited by 100

There will be a balance  of 10 in the GRNI account

How do you reconcile this balance? so as to clear the GRNI account

The best way to solve this is to close the GRN. Once the GRN is closed, there will be a journal entry that will clear the balance of 10 against an expense account  called ‘Goods Clearing Account‘