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Question on MIGO and MIRO

Former Member
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Hi All,

I have a question like is there any role like that we have first do MIGO (Goods Receipt) and then go to MIRO (invoice receipt r verification) r we can do either of them first.

Please give me clear clarification on this.

Thanku

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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thanku

Former Member
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Hi,

As a process, one should do MIGO first and then MIRO.

During MIGO (Good Receipt), the liability to pay vendor is created.

During MIRO (Invoice Receipt), the liability is cleared and booked to Vendor A/c.

Certain times, in PO, if GR based IV is not choosen, then any of the above can be booked first. But there will be difference in Liability A/c which is known as GR/IR Account.

Hope this helps, if yes, please assign points.

Regards,

Harish

Former Member
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Thanku Harish Mittal,

It was a nice do understand, to extent with that can you please give me some example with some situation please

Former Member
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Hi,

When we receive the goods, the accounting entry is passed (auto):

Dr. Stock / Expenses

Cr. GR/IR Account (Liability is created)

When Invoice is verfied against the above PO item:

Dr. GR/IR Account (Liability is cleared)

Cr Vendor Account

The above is standard normal process. At the monthend, balance represents the liability to the extend material/ services received and invoices are yet to book.

In PO, there check-box is optional for GR based IV. Due to which the above two can be done independently also. If the check box is selected, IR can be done only after GR.

Hope this helps, if yes, please assign points.

Regards,

Harish