Why we have values in GR/IR account.

[pra5]

It is required by the financial standards, at the end of every FI period, the GR/RI accounts have to be split into two accounts

GR/IR Classification

• Goods Received but not Invoiced} it is under liability
• Goods Invoiced but not received} it is under Asset

In Sap the transaction posted for GR/IR Classification will go through all the open PO and check why we have balance.

The GR/IR Analysis/Maintenance transaction is run to write off the quantity remains in expense(loss) account.

[HakanHaslaman]

As far as I understand, the GR/IR account serves as a temporary clearing account to manage timing differences between goods receipts (GR) and invoice receipts (IR). From what I know, balances might occur when Goods are received but not yet invoiced (considered a liability) and Invoices are received but the goods have not been delivered (considered an asset). At the end of each financial period, these balances are usually reviewed and classified to ensure accurate reporting. Any discrepancies are addressed, and remaining amounts may be written off to expense accounts.