How To Guide

RNI Reconciliation Process

RNI Exception Report ................................................................................................................................. 1
Manual RNI Reconciliation ......................................................................................................................... 3
GL/RNI Reconciliation ................................................................................................................................ 5
Transactional RNI Analysis ........................................................................................................................ 5

The process of reconciling the Received not Invoiced account involves reconciling the RNI general ledger
account balance at period end with that of the RNI Report.

RNI Exception Report

This RNI report matches all the receipts and their corresponding invoices for existing purchase
orders. If the invoicing prices are different than the purchase price a variance will show up between
the receipt and invoice line items.
The Account field will need to be populated with the G/L Account number for the RNI account
The As of Date will cause the report to only display records prior it this date.
If the Print Details flag is set to Yes, then detailed information will be written to the report.
The Zero Suppress flag will either allow (No) or hide records (Yes) with a zero balance.

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Below is an example of the RNI report with details and zero suppression:

RNI Report variances between the receipt value and the invoice value

Scenario 1: If the variance between the receipt value and the invoice value is due to a difference in unit
price (i.e. purchase order price was different than invoice price). No action is required. This
variance to RNI has already been accounted for on the general ledger because in cases where there is a
price variance an additional STR journal entry has automatically been generated post voucher to account
for the difference. Therefore no manual journal entry should be necessary to bring RNI into
balance in this situation.

Scenario 2: In situations where there is a difference in quantity received and quantity billed a manual
journal entry will be needed. For example...

Purchase order: 100 units of product for $1.00/unit

Material Received 100 units at $1.00/unit

Receipt journal entry

Inventory $100
RNI $100

Invoice Received 99.5 units at $1.00/unit (This may happen if your vendors scales are tailored slightly
different than yours.)

Invoice Journal entry

RNI $99.50
AP $99.50

In this case you never expect to receive an additional bill from your vendor so you manually reconcile the
item (see step 3) and then go to the general ledger and make the following manual journal entry to bring
the balance of RNI to $0 on the transaction as a whole.

RNI $0.50
AP $0.50

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Note: If you close out the quantity when asked during purchasing invoicing, the above scenario will not
require a journal. The RNI account will be automatically adjusted since no further invoicing will be
necessary against the receipt.

Scenario 3: You have items that are not stock managed showing up on the report. Many customers
will create part numbers for non-inventory controlled products. Some examples may include office
supplies, janitorial supplies, misc factory supplies (rags, water cooler bottles, etc). This allows these
products to be processed on a purchase order, received and invoiced (three-way matched). Transactions
for the products that are not stock managed need to be reconciled from the RNI Report (see the next
step) because the receipts/invoices are not sending entries to the RNI account.

Scenario 4: Miscellaneous Invoices - You will see that this report breaks out the transactions by
vendor. At the end of each section details charges to RNI via Supplier invoices. The report refers to
them as "Miscellaneous Invoices for Supplier". In the first month or so after a go-live you will typically see
many charges to RNI being made via Supplier/Misc Invoices because the receipts that correspond to
these invoices were conducted in the old system. The charges made via Supplier invoices should in total
bring down the opening balance of your RNI account to zero. Upon confirming that these supplier
invoices in fact correspond to a receipt conducted in the old system you can simply clear the invoice from
the report (see detail below on the RNI Reconciliation function). If you see charges to RNI being made
via Supplier invoices many months after the go-live this should be of concern because this probably
means that the charge was made to RNI in error. The supplier invoice in those cases should be
corrected, charging it to the correct account.

Note: If the supplier does not have any receipts showing on the RNI report, misc. invoices will not be
included and will account for a difference between the RNI report and the GL.

Scenario 5: Purchase Direct Shipments Note you may have purchase orders that you request that
your vendor ship the goods directly to your customer, and thus never pass the goods through your
inventory. These PDS (purchase direct shipment) invoices will appear on the RNI report, but they do not
charge RNI because the charge went directly to cost of sales. Thus these invoices can be manually
cleared from the report without the need of any correcting journal entry.

Scenario 6: Purchase Receipts that were Force Closed X3 permits you to force close a purchase
receipt. This is sometimes appropriate in situations where you receive goods on a purchase order but
you then in turn do not expect to receive an invoice for the receipt. When the receipt is force closed it
removes it from the Receipt Selection left-list menu in the purchase invoice entry screen. The receipts
that are force closed have already been accounted for on the general ledger. Therefore no manual
journal entry should be necessary to bring RNI into balance in this situation.

Manual RNI Reconciliation

The RNI Reconciliation is used to flag purchase orders and miscellaneous invoices as manually
reconciled. When these records are set as reconciled, they no longer appear on the RNI report.

When a detail is highlighted, you can right-click to access the Reconcile action. This toggles the
reconcile flag. If the flag is on or yes then a checkbox will appear in the Rec column. If attempt to
reconcile a lines marked as reconciled, a warning message appears and the user is prompted to
confirm that action. After confirmation, the detail is un-reconciled.

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GL/RNI Reconciliation
After you complete the reconciliation activities (automatic and manual) highlighted on the RNI Report, the
totals of that report should tie out to the general ledger balance.

Transactional RNI Analysis

If you still have discrepancies between your GL balance and what appears in your RNI exceptions, you
can use the Account Balance report to view the individual transactions on the RNI account.

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