Dock Receiving & GRNI Accruals

The Receiving module handles inbound shipments from suppliers at the warehouse dock. It creates Goods Received Notes (GRN), updates perpetual inventory balances, recalculates Moving Weighted Average Cost (WAC), and posts Goods Received Not Invoiced (GRNI) accounting accruals.

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Receiving & Costing Architecture

flowchart TD
    A[Supplier Delivery Arrives at Dock] --> B[Receiving Queue /receiving]
    B --> C[Inspect Physical Items & Quantities]
    C --> D{Damage or Discrepancy?}
    D -- Damaged Items --> E[Route to QUARANTINE Bin]
    D -- Sound Items --> F[Route to DOCK / STAGING Bin]

    E & F --> G[Post Goods Received Note GRN]
    G --> H[1. Update Product Moving WAC]
    G --> I[2. Post GL: DR Inventory Asset / CR GRNI Accrual]
    G --> J[3. Update Purchase Order Received Quantities]
    G --> K[4. Enqueue Sound Items to Putaway Queue]

1. Moving Weighted Average Cost (WAC) Recalculation

Whenever stock is accepted at the dock at a known unit purchase cost:

New WAC = ((Current On-Hand * Current WAC) + (Received Units * Inbound Unit Cost)) / (Current On-Hand + Received Units)

The recalculated unit cost becomes the immediate valuation base for future sales orders and COGS dispatches.

2. General Ledger GRNI Accrual Entry

Receiving goods before receiving the supplier invoice triggers an automated accrual entry:

Debit:  Inventory Asset Account                    (Received Units * Unit Cost)
Credit: Goods Received Not Invoiced (GRNI) Accrual  (Received Units * Unit Cost)

When the supplier invoice arrives later, the AP matching process clears the GRNI account and posts to Accounts Payable.

3. Quarantine Routing for Damaged Items

If items arrive broken, defective, or fail inspection, the dock operator enters the count in the Damaged Quantity field. These units bypass active stock and are routed directly into the warehouse facility’s quarantine bin, awaiting Return to Vendor (RTV) or credit note settlement.

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Step-by-Step Workflows

1. Receiving a Purchase Order Delivery

1. Go to Receiving (/receiving).
2. Select the purchase order from the expected delivery queue (or search by PO number).
3. Review order lines and verify physical carton counts.
4. Enter the Received Quantity for sound items.
5. If any items are damaged, enter the count in Damaged Quantity.
6. Click Confirm Goods Receipt.
7. The system posts the GRN, updates PO status, triggers the GRNI journal, and queues the items for Putaway.

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Field Reference

Field	Description
PO Number	Supplier order identifier (PO-...).
Supplier	Vendor name delivering the goods.
Ordered Quantity	Original contracted line count.
Received Quantity	Verified count accepted into staging stock.
Damaged Quantity	Units routed immediately to quarantine.
Unit Cost	Valuation price used for WAC and GRNI accrual.