The GR/IR – the goods receipt/Invoice Receipt account is
used to post to whenever goods that are not yet invoiced
have been received or when invoices arrive before the
delivery of goods.
During the time between the invoice being created and
delivery of goods, there can be a timing difference, in
order to accommodate this timing difference, a GR/IR account
is maintained temporarily to record the flow .
The GR/IR clearing account is usually cleared at the end of
a period or fiscal year for those order items that no
further goods receipts or invoices are expected for.
Choose Logistics- Materials Management - Logistics Invoice
Verification - GR/IR Account Maintenance -Maintain GR/IR
Enter data as required on this screen in the Document header
The Automatic clearance function is intended for processing
in the background.
the individual purchase order items that have quantity
variances and match your selection are now listed.
Select the order items that you want to clear.
Clear the GR/IR clearing account for the selected purchase
orders by choosing List - Post clearing.
The offsetting entry to clear the GR/IR account is the same
as the posting made when you enter an invoice for a purchase
The GR/IR account is cleared against the stock account,
unless no stock coverage exists. If the material stock is
smaller than the quantity to be cleared, only the actual
stock quantity is debited or credited proportionally. The
remaining amount is posted to a price difference account.
The offsetting entry is posted to a price difference account.
The offsetting entry is made to the cost or fixed asset
account shown in the account assignments in the purchase order.
material receipt entry:
Stock a/c -----Dr
AP creation entry
AP payment entry
Vendor A/c -------dr
On meterial invoices company will have some credit days for
clearing the payment, so company will make the payment
after utilizing the credit period but we need to create the
laibility in our books.
so for GR/IR account will be used for create laibility
with use of credit periods.
Firstly, what does the acronym GR/IR stand for, as this
answer is instructive as to the purpose of this account ?
GR/IR = Goods Received/Invoice Receipt
This account is used as an interlocking account, to
reconcile the accounting values between the 2 processes of
receiving goods ordered from a supplier and receiving the
supplier’s invoice for those goods. These 2 processes can
occur in either order i.e. invoice arrives first, goods
arrive later, or, conversely. The total value of the goods
received (unit price * unit cost) should be the same as
reflected on the invoice, in which case this interlocking
account will net-out to zero.
Thus, assuming goods receipt occurs first, the following
accounting entries would be effected :
Goods received :
Cr. GR/IR account
Invoice received :
Dr. GR/IR account
Cr. Accounts Payable
Therefore, as an interlocking account between these 2
processes, the GR/IR account should net to zero, (Dr. =
Cr.) and, in doing so, prove that the value of the goods
received = the value of the goods invoiced. If these 2
amounts don’t reconcile, then we need to investigate the
reason(s) for this variance, e.g. shortfall in supply.
Actually, I believe that if would be more helpful to
reverse the account name to the IR/GR account, as this
helps to remember that the offset account posting from the
invoice is debited to the IR/GR account (debit being on the
left-side) and the offset posting from the goods receipt is
credited to this account (i.e. right-hand side of the
account). Thus, IR on the left, GR on the right.
The offsetting entry for clearing the GR/IR clearing
account is posted to the stock account (provided that there
is sufficient stock coverage for the quantity difference):
• If there is a delivery surplus on the GR/IR
clearing account, the material was debited with too high a
value when the goods receipt was posted. When the GR/IR
clearing account is cleared, the material is credited
• If there is an invoice surplus on the GR/IR
clearing account, the material was debited with too low a
value when the goods receipt was posted. When the GR/IR
clearing account is cleared, the material is debited
If there is insufficient stock coverage for this quantity,
only the portion corresponding to the available stock is
posted to the stock account. The rest is posted to a price
For a material subject to standard price control, the
offsetting entry to clear the GR/IR clearing account is
made to a price difference account. Thus, there are no
value changes in the material master record.
It's a sysmtem how you track the amount of goods you
received and how much you were invoiced.
Let's just say your receiving receive 5 boxes of widgets
for $10.00. This item is going to sit on your account until
you receive a bill from the vendor for the same account and
quantity or you clear the item off the account manually.
waht is the use of validation and substitutions, what is the
difference between validation and substitutions? where did u
use validation and substitutions in real time(any person
tell answer only real time not book thiry)how to configure?
Say (e.g) in Salary G/L A/c instead of giving P&L they
select Balances sheet & it is saved & in this they passed
some entry also. But now I have to Select P&L in the
Salary G/L. (Note should not create new G/L. In the same
Salary G/L I have to change) Tell me how you can change
Can somebody help me on how to run automatic payment programme? what are the steps involved from the beginning till the end...(I am not asking about config part, consider that you are giving training to the end user)...