GRN preparation & Purchase

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This discussion clarifies the accounting treatment for purchases and stock when the Goods Received Note (GRN) falls into a different financial year than the invoice and goods arrival. The advice given is to account for both the purchase and the stock in the financial year the goods actually arrived (29th March 2025), which was FY 2024-25. This is regardless of the GRN being prepared in the subsequent financial year (FY 2025-26).

Rajesh

Rajesh

(Querist)
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31 August 2025 1) Purchase invoice is dated 25th March 2025 (FY 2024-25)
2) Goods arrive in the factory on 29th March 2025 (FY 2024-25)
3) GRN is prepared on 2nd April 2025 (FY 2025-26)

What should be accounting treatment as far as Purchase and Stock is concerned?

Kindly guide.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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31 August 2025 Both purchase and stock should be accounted for in FY 2024-25, on the actual goods arrival date (29th March 2025), irrespective of the GRN being in FY 2025-26, and not simply on the invoice date.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 September 2025 Good luck....

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