Accounting Software sometimes different terminology and get some confusion when it try to reconcile the books in multi company, especially when they are using different software. In SAP world, they are using GRIR (Good Received Inventory Received) and in Business Central world, they use GRNI (Good Received Not Invoiced) concept. Either one of them is right or wrong, it just the way they handle the accountings are a bit different in style.
Key differences are SAP is more simplified while BC is more detail oriented in Accounting World. In Business Central, Inventory (Interim) concept is introduced. In Business Central world, actual inventory is where final invoice comes as settlement, while in SAP world, Inventory is fully debit the time of receiving and difference booked in GRIR clearing accounts. I have feeling it’s more of cultural differences, more of German Style (SAP) vs Denmark Style (BC). German hates uncertainty and book values ahead of time, and deal with variance in later. However, Danish loves to settle final result when things end at the end.
In this sample, we are using Inventory is expected to be 100 dollars, but actual amount becomes 90 dollars. First case, we have shown GRIR approach. In Second and third scenarios, We are showing Standard Costing and FIFO costing in Business Central. As you can see, Business Central uses a lot more G/L account to increase the visibility of financial flows.
It is not right or wrong to use either one of them. It is pretty much different style of choice. However, once you understand beneath what it does, it would be no issue.
I love you both, but I’m more comfortable with Danish Style~
