Answer / venkat

gr/ir account is offsetting entry, see the following
example for use

when ever we receved good entry is

material a/c dr
to gr/ir clearing a/c

afterveryfication entry passed is

gr/ir clearing a/c dr
to party a/c

so it is a offsetting entry, it allways cleared no balance
at last.ok

Answer / ramesh nalamada

Normally there will be time lag between recording of Goods
received and Invoice received. To track the differences at
any point of time, GR/IR Account will be helpful.

Answer / guest

Hi,
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
Clearing Account.
Enter data as required on this screen in the Document header
data frame.
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
order.
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.

Thank You.

Answer / rajesh.m

check the complete Entry flow for GR/IR

material receipt entry:
Stock a/c -----Dr
GR/IR ac-------cr

AP creation entry

GR/IR a/c--------Dr
Vendor a/c-------cr

AP payment entry

Vendor A/c -------dr
Bank A/c-----------cr

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.

Answer / joe sherwod

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 :

Dr. Inventory
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.

Answer / stanina

It depends on the expense nature.If it's current expense,
the gr reflect the expenditure account, if it's related
with the material(stocks), it reflect the material account:

material receipt entry:
Stock a/c -----Dr
GR/IR ac-------cr

AP creation entry

GR/IR a/c--------Dr
Vendor a/c-------cr

AP payment entry

Vendor A/c -------dr
Bank A/c-----------cr

or
Dr. Expenditure A/c
Cr. GR/IR A/c

After IV is done:
Dr. GR/IR
Cr. Vendor A/c

After payment
Dr. Vendor A/c
Cr. Bank

Answer / sudharshana vamsi

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
accordingly.
• 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
accordingly.
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
difference account.
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.

Answer / nuwantha

GR IR is an intermediate account created while raising Goods
Received Notes (GRN).
The account gets cleared after the Invoice (IV) is done.

After GRN is raised:
Dr. Expenditure A/c
Cr. GR/IR A/c

After IV is done:
Dr. GR/IR
Cr. Vendor A/c

After payment
Dr. Vendor A/c
Cr. Bank

If GR IR is high it shows that the Company has a high liability.
It also states that the IV is not done in time.
It can be reduced by doing the IV in time.

Answer / jay

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.

Answer / rajaram

Its an offsetting a/s, where u post when goods received and
invoice not received and invoice received and goods not
received.

When we use 4 special periods? Please calrify with example.

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