Interested to Buy Any Domain ? << Click Here >> for more details...
What is GR/IR account? Why do you maintain that? Explain the
importance of GR/IR clearing account.
- 19 Answers
- 234622 Views
- IBM, Nipuna, Orica, TE, I also Faced
- E-Mail Answers
Answer Posted / joe sherwod
Firstly, what does the acronym GR/IR stand for, as this
answer is instructive as to the purpose of this account ?
GR/IR = Goods Received/Invoice Receipt
This account is used as an interlocking account, to
reconcile the accounting values between the 2 processes of
receiving goods ordered from a supplier and receiving the
supplier’s invoice for those goods. These 2 processes can
occur in either order i.e. invoice arrives first, goods
arrive later, or, conversely. The total value of the goods
received (unit price * unit cost) should be the same as
reflected on the invoice, in which case this interlocking
account will net-out to zero.
Thus, assuming goods receipt occurs first, the following
accounting entries would be effected :
Goods received :
Dr. Inventory
Cr. GR/IR account
Invoice received :
Dr. GR/IR account
Cr. Accounts Payable
Therefore, as an interlocking account between these 2
processes, the GR/IR account should net to zero, (Dr. =
Cr.) and, in doing so, prove that the value of the goods
received = the value of the goods invoiced. If these 2
amounts don’t reconcile, then we need to investigate the
reason(s) for this variance, e.g. shortfall in supply.
Actually, I believe that if would be more helpful to
reverse the account name to the IR/GR account, as this
helps to remember that the offset account posting from the
invoice is debited to the IR/GR account (debit being on the
left-side) and the offset posting from the goods receipt is
credited to this account (i.e. right-hand side of the
account). Thus, IR on the left, GR on the right.
| Is This Answer Correct ? | 62 Yes | 3 No |
Post New Answer View All Answers
What is a purchase order (po)? : fi- accounts payable
What is a financial statement version? : fi- general ledger accounting
What are characteristics and value fields?
What is short-end fiscal year?
What is an outline agreement? : fi- accounts payable
What is budgeting? : co- cost center accounting
Where can you use the internal order?
How do you configure the assignment of variances from product costing to copa module?
Where can I get the mysap business suite on linux?
What is the clearing basis for check deposit?
Where are payment terms for vendor master maintained?
What are the objects can archive in the SAP system and how for Finance Module ?
Hai i completed MBA finance and done SAP FICO than i want start my carrer with sap fico entry level .Is there any openings such jobs .suggest me any one plz................
What is the company code in sap?
Hello every, I have my MBA in finance in 2011 I was working for NBFC. Now I am decided to join in sap fico course. But the fact is I forgot all accounting knowledge. Zero accounts knowledge. How may eligible for sap fico course, is there any problems to face during course regarding accounts etc. What are the problems basically peoples like me face in fico course and after getting a job.
