Goods Delivered Not Invoiced (GDNI) Adjustments

A prepayment is where you have delivered the goods, but not invoiced for them. An example is an office fit-out, where you have delivered goods to a customer but will not invoice for them until it is agreed the work is complete. The GDNI routine will create an adjustment nominal journal in one period, to move values from stock nominal accounts to a prepayment nominal account, and a reversal nominal journal in the subsequent period to move values from the prepayment nominal account to the stock nominal accounts.

There are therefore three stages to record a GDNI prepayment:

• The original sales order (or sales return), where each detail line is allocated to a Balance Sheet > Current Assets > Stock nominal and the associated sales delivery note (or sales collection note) when the stock is booked in.
• The nominal adjustment to the Balance Sheet > Current Assets > GDNI Stock Prepayment nominal.
• The reverse nominal adjustment to Balance Sheet > Current Assets > Stock nominals.

Creating a GDNI Adjustment

To create a GDNI adjustment:

1. In the Nominal menu, click Nominal Ledger.
2. In the toolbar, click GDNI. The GDNI Adjustment window opens on the New GDNI Adjustment tab.

   Note: If you cannot see the GDNI button, read about Goods Received Not Invoiced (GDNI) and Goods Delivered Not Invoiced (GDNI) Adjustments first, and check if the relevant Company Settings have been selected.

3. Select a single Year and Period for which stock was received, but purchase invoices were not.

   Example

   It's June, and you are reviewing May. Which goods did we supply in May for which the sales invoices have not yet been sent? Select the Year and Period for May. Check period start and end dates in Set-up > Periods.

4. Optionally, to look over a range of periods, select a start period.

   Example

   It's June, and you want to review February to May. Which goods did we supply in the periods February to May for which the sales invoices have not yet been sent? Additionally, to Look further back, select the Year and Period for February.

   Note: The transactions' period is used to work out which transactions to include in the adjustment, not the tax point.

5. Select the nominal account for the stock prepayment.
6. Type a Reference for the nominal journals.
7. Click Create adjustment. You are notified that two nominal journals have been created, one for the adjustment and a second to reverse the adjustment.

Viewing GDNI Adjustments

1. Click the tab Previous GDNI Adjustments.
2. In the Select adjustment list, select the GDNI adjustment you have just created. Displayed are:
   • Adjustment period – the period you are adjusting for
   • Look back – the start period you are adjusting for
   • Batch reference – your reference for the GDNI adjustment
   • Adjustment NOMJ – the nominal journal created for the prepayment
   • Created – created date
   • Reversal period – the period in which the adjustment is reversed
   • Amount – the total of the goods included within the adjustment
   • Reversal NOMJ – the nominal journal created to reverse the prepayment
   • List of documents – sales delivery (and sales collection) notes, and their associated order and return references, together with the nominals for the order detail lines.
3. The nominal journals created can be viewed on the Nominal Journals daybook. On the Nominal menu, click Journals.
4. Double-click to open the Adjustment NOMJ. You will see:
   • Date is the last date in the period you are adjusting for
   • Year and Period is set to the adjustment period
   • The line Description is GDNI, followed by the batch reference entered above
   • There are lines that credit totals away from the detail line nominals.
   • There is a debit line which moves the total to the Stock Prepayment nominal, because you have not sent the sales invoices. This total appears on your balance sheet as an asset.
5. Double-click to open the Reversal NOMJ. You will see:
   • Date is the first of the following period
   • Year and Period is set to the period following the Adjustment NOMJ
   • The line Description is GDNI reversal, followed by the batch reference entered above
   • There is a credit line that moves the total away from the Stock Prepayment nominal
   • There are debit lines which move totals back to the detail line nominals.

Deleting a GDNI Adjustment

Only one adjustment can be created for each period. If you try and create another adjustment for the same period, a message: An adjustment has already been made for this period, which would have to be deleted first is displayed.

To delete the original adjustment:

1. Click the Previous GDNI Adjustments tab.
2. From the Select Adjustment list, select the batch adjustment you want to delete. The batch reference, period range and reversal period, and created date are displayed.
3. Click Delete. You are shown the list of nominal journals that will be deleted. Click Yes.
4. The deletion is confirmed.

 

See Also