Accruals Discovery For Goods Received but Not Invoiced
Goods-received-but-not-invoiced Accruals represent expenses recorded for goods or services received by a company before the corresponding supplier invoice is received. This ensures accurate financial reporting by recognizing liabilities in the correct accounting period.
Key Features
Goods Receipt Notes (GRNs)
Scenario: When goods are received, a GRN is created in the system to confirm receipt. Accruals are based on GRNs that have no matching invoices. Example: A shipment of 1,000 units of raw materials is received on December 30. The invoice arrives on January 10. The system records a GRNI accrual using the GRN date.
Purchase Order (PO) matching systems
Scenario: The system matches GRNs against corresponding POs. Any mismatch between received goods and unrecorded invoices flags items for accrual. Example: A PO for 500 units of packaging materials was placed, and 450 units were received by the period end. No invoice has been received, so a GRNI accrual is triggered for the received quantity.
Receiving reports or logs
Scenario: Physical or digital receiving logs are maintained, and accountants review them to identify goods received but not invoiced. Example: A construction company receives 100 tons of cement. The receiving report shows the delivery date, but the invoice is pending, so the accounting team accrues for this amount.
Warehouse inventory systems
Scenario: Inventory systems track increases in stock levels and flag entries where no matching invoice exists within a certain timeframe. Example: A retailer receives 300 units of electronics and records them in inventory. The inventory system detects a delay in invoice receipt and prompts a GRNI entry.
Vendor acknowledgements or shipping documents
Scenario: Documentation from vendors confirming dispatch or delivery can act as a basis to identify expected but uninvoiced items. Example: A vendor delivers specialized machinery parts. The shipping documentation confirms receipt on-site, and the finance team accrues based on delivery confirmation.
80%
Accrual processing cost
Co-pilot reports all accrued expenses using AI eliminating the need for manual accruals completely
<5%
Variance in accured Vs actual costs
Co-pilot identifies all expenses comprehensively for all type of scenarios through data using AI.
Human Errors
Accrual reversal
Month end closing pressure
Auditability
VALUE PROPOSITION
Why Hyperbots Accruals Co-Pilot
Hyperbots Accruals Co-pilot automates accrual identification, booking, and reversal processes with high configurability and accuracy, ensuring timely and compliant financial reporting while reducing manual effort and errors.
Why Hyperbots Agentic AI Platform?
Finance specific
Hyperbots Agentic AI platform specializes exclusively in finance and accounting intelligence, leveraging millions of data points from invoices, statements, contracts, and other financial documents. No other platform has such large pretrained models on F&A data.
Best-in-class accuracy
Hyperbots achieves 99.8% accuracy in converting unstructured data to structured fields through a multimodal MOE model integrating LLMs, VLMs, and layout models. With contextual validation and augmentations, the platform ensures 100% accuracy for deployed agents.
Synthesis of unstructured and strutured finance data
Hyperbots agents emulate finance professionals to autonomously perform F&A tasks by reading and writing data like COA, expenses, and vendor masters from core accounting systems and integrating it with unstructured data from financial documents such as invoices, POs, and contracts.
Pre-trained agents with state of the art models
Hyperbots' Agentic platform, pre-trained on millions of financial documents like invoices, bills, statements, and contracts, ensures seamless integration, high accuracy, and adaptability to any accounting content, form, layout, or size from day one.
Company specific inference time learning
Hyperbots' Agentic platform employs state-of-the-art Auto ML pipelines with techniques like reinforcement learning to enable inference-time learning for tasks such as GL recommendation and cash outflow forecasting, ensuring continuous improvement and adaptability.
FAQs: Accruals Discovery for Goods Received but not Invoiced
What do you do if good received are lesser than in PO. What computation Hyperbots Co-pilot does to estimate accrual?
Hyperbots Co-pilot computes the accrued amount based on actual goods received. This is done by understanding unit price from PO and multiplying goods received count from GRN.
How can timing differences between the arrival of goods and the subsequent vendor invoice impact financial statements if not recorded as GRNI?
If the receipt of goods is not recorded as a GRNI accrual, liabilities and expenses remain understated until the invoice arrives. This timing gap can distort financial results, affecting period-end reporting accuracy, and potentially misleading stakeholders about the company’s true expenses and obligations.
What role do vendor acknowledgements or shipping documents play in verifying received goods before an invoice is issued?
Vendor acknowledgements or shipping documents confirm the dispatch and delivery of products. Accounting teams can rely on these documents to accrue expenses for received goods, ensuring that financial records reflect actual liabilities even if the invoice is delayed.
Why is it important for warehouse inventory systems to alert accounting teams to incoming stock without associated invoices?
Warehouse inventory systems track stock levels in real-time. If no invoice is matched to recently added inventory, these alerts prompt accounting to record a GRNI accrual. Without such alerts, there is a risk of understating liabilities and misrepresenting the company’s financial position.
How can regular review of physical or digital receiving logs improve the accuracy of GRNI accruals?
This manual regular review is not more needed once Hyperbots Accruals Co-pilot is implemented. Co-pilot keeps using GRN and open PO discovery automatically in 24x7 manner.
In what ways do 2-way matching by Hyperbots Co-pilot help detect discrepancies between received quantities and pending invoices?
Hyperbots Accrual Co-pilot compare quantities received (from GRNs) against the original order details. If the invoice does not arrive or shows different amounts, the system flags these discrepancies, ensuring that any goods without matching invoices are promptly accrued as a GRNI entry.
How do Goods Receipt Notes (GRNs) serve as a reliable source document for identifying goods received but not yet invoiced?
GRNs are generated at the point of receiving goods and record the exact quantities and receipt date. Since the vendor’s invoice may not arrive immediately, GRNs provide authoritative evidence that inventory has been received and should be accrued as a liability until the invoice is recorded. Hyperbots Accruals Co-pilot reads GRN and PO from ERPs and estimates the accrued expenses through matching.
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