The Goods Receipt/Invoice Receipt (GR/IR) account is used to post whenever goods received but not yet invoiced or invoices received before the goods have been received.
Potential benefits of maintaining & monitoring GR/IR clearing account-
- To keep the focus on unpaid liabilities with aging
- Visibility of cases where invoices have been booked but material not yet received and vice-versa
- Identify GR/IR discrepancies and communicate to the purchasing team for further action
- Vendor behavior analysis
Entries related related to GR/IR in SAP
When goods received following entry has been passed
Inventory A/C …………………………………. Dr
To GR/IR Account…………………………….. Cr
At the time of booking vendor invoice
GR/IR Account…………………………………. Dr
To Vendor Account…………………………. Cr
At the time vendor payment
Vendor Account………………………………. Dr
To Bank Account…………………………….. Cr
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