GR/IR Clearing Accounts (WRX)

updated Feb 28, 2009 12:07 pm | 18,322 views GR/IR clearing account is one of the important accounts used in standard SAP system during Logistics Invoice Verification. The GR/IR clearing account is an intermediate account between the stock account and the vendor account. At goods receipt, the net invoice amount expected is posted to the stock account. The offsetting entry is posted to the GR/IR clearing account. This posting is then cleared by an offsetting entry on the vendor account at invoice receipt. GR/IR Clearing Account Maintenance In the normal course of business there are always chances of quantity differences between goods receipt and quantity invoiced for a purchase order. These differences can be positive or negative and hence always result in a debit or credit balance on the GR/IR clearing account. GR/IR clearing Account checks for the purchase order quantity against the goods receipt quantity and invoiced quantity before posting any balance on either side.
If the quantity invoiced is larger than the quantity received, the system then expects further goods receipts for this purchase order to clear the balance. On receipt of the awaited quantity the balanced is cleared in the GR/IR clearing account.

If the quantity received is larger than the quantity invoiced, the system then expects further invoices for this purchase order to clear the balance. On receipt of the awaited invoice the balanced is cleared in the GR/IR clearing account Delivery costs differences can also be cleared by GR/IR clearing account. If despite the Quantity differences between goods receipt and invoice receipt no more goods or invoices are to be received for a purchase order, then you need to clear the balance manually. This can be done in the following different ways: Return the extra goods to the vendor. Cancel the invoice and post a corrected invoice or a credit memo for the surplus posted quantity. Clear the GR/IR clearing account manually. Account Maintenance Document Account Maintenance Document is a document which displays the quantities of the debit or credit of a material in GR/IR clearing account maintenance. If you clear quantity differences between the goods receipt and invoice receipt for a purchase order using account maintenance, the system produces an account maintenance document. Account maintenance document has integration to the following accounting documents:

Accounting document Profit center document Special ledger document Material ledger document

GR/IR Account Maintenance: Account Movements 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. Material with Moving Average Price (V) 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. If there is sufficient stock coverage for the quantity difference for a material subject to moving average price control, the offsetting entry for clearing the GR/IR clearing account is posted to the stock account. In this case, there are two possibilities either material will be credited or debited. Credit Entry; 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. Debit Entry; 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. It is the only exception when you use the price difference account for material with moving average price control. Material with Standard Price (S) 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.

Purchase Orders Assigned to an Account If you have assigned a purchase order item to an account via account assignment category the offsetting entry is made to the respective cost or fixed asset account shown in the account assignments in the purchase order.

A GR/IR (goods-receipt/invoice-receipt) clearing account is a bookkeeping device that can be used when goods arrive before the invoice is generated, or when an invoice arrives before the goods are delivered. In the normal course of business, discrepancies often (if not usually) exist between goods receipt and quantity invoiced for a purchase order. These differences produce an artificial debit or credit balance. The GR/IR clearing account checks the quantity of goods received against the quantity of goods invoiced and then posts a positive or negative balance accordingly. The GR/IR clearing account thereby serves as a "buffer" between the inventory account and the vendor account, minimizing confusion and reducing the risk of accounting errors. A GR/IR account should be cleared at regular intervals, such as at the end of every fiscal year.