what is gr/ir

[shiva_n]

hi friends

pls explain breafly gr/ir what purpose use the gr/ir

regards

shiva

[sridevi_p · Accepted solution]

Hi,

GR - Goods receipt

IR - Invoice Receipt

GR/IR is a clearing account in SAP.

This is usually maintained to find the discrepancies between received amounts and invoiced amounts

Examples of this type of discrepancy include when the vendor delivered the goods but has not yet sent an invoice, if the vendor sent the invoice but never delivered the goods, or if the goods were returned to the vendor after the invoice was already paid.

Regards,

Sridevi

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[Former Member]

Hi shiva

GR/IR is goods receipt/invoice receipt account. it basically serves the purpose of three way matching in a purchase cycle. hence it is basically a intermediate account.

consider a simple example. you do make a PO and do goods receipt followed by invoice receipt.suppose goods receipt is updating your inventory.

now when you do a GR relevant inventory account gets updated. its a debit entry.

corresponding credit entry goes to GR/IR account.

when you do a invoice receipt for this account vendor is credited and debit entry is to gr/ir account.

so now in this simple scenario (consider no taxes freight etc involved) debit entry in GR/IR will equal credit entry in vendor account. and if gr/ir is matching you the invoice posted is correct.

please tell if you have any specific query. assign points if solution is helpful...

[Former Member]

Shiva

GR/IR is basically an intermediate a/c which holds the liability of the Supplier till the invoice is booked. Once the invoice is booked, the liability is transferred from this a/c to the Suppliers A/c.

E.g Goods are recieved without the bill. You do the GRN and the following entry is passed-

Inventory Dr

To GR/IR Clearing

At this stage, liability is created. Now at the time of closing, the balance in GR/IR account will show up as a liability.

Now, when the Invoice is recieved, the following entry is passed-

GR/IR Clearing Dr

To Supplier

Here, the liability is transferred to Supplier.