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What is GR/IR account? Why do you maintain that? Explain the
importance of GR/IR clearing account.
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Answer Posted / marty
A GR/IR account is a clearing account that is used to clear
accounting entries that occur when the area has chosen to
set up a purchase order in SAP with a valuated goods receipt
requirement.
The clearing account usually nets to $0 when the goods
receipt total quantity matches the invoice receipt total
quantity, although, we have seen some exceptions to this
occur. (Exceptions usually occur when the GR-based IV flag
is checked or the cost object has been changed.) However,
when the the total quantities match, even if there are price
blocked issues, the account will clear and often record a
variance through the IR if the goods receipt was completed
first. If the IR was completed prior to the goods receipt,
the goods receipt will take on the value of the IR for the
quantity invoiced. Through this normal clearing process the
open items of this account will be closed.
If the normal clearing process does not occur then the
remaining open items should be reviewed by an experienced
member of the staff to determine what is needed to close the
item. There may be a GR surplus or an IR surplus.
The reason that it is important to review and reconcile
these open items is GR surplus items could mean that there
are over recorded expenses that cause an inflated inventory
value or incorrect over expense to a consumption account.
This often occurs due to processing a goods receipt for
items that were not physically received. It also occurs
when a department is not completing the goods movement when
returning product to the vendor, etc.
The IR Surplus items often are due to orders that are
missing goods receipts and other reasons that create
blocked. In general, these items receive more attention
because of the blocking condition that prevents the vendor
from being paid.
Left unchecked, you generally will end up with a big bucket
of over recorded expenses / money that you don't even know
that you have that could be used elsewhere.
There needs to be an effective statement review process in
place and/or contact with the vendors. Items can be cleared
by processing additional GR or IR transactions. There also
are clearing transactions such as account maintenance that
can be processed that will clear the GR/IR account. Access
to the "ACCM" transaction should be very limited. It may be
necessary to create a custom report to better manage this
clearing account.
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