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GR/IR Clearing Account s Use in SAP FI Module

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GR/IR Clearing Account is an intermediary clearing account for goods and invoices in transit. GR/IR Clearing Account represents Goods Receipt and Invoice Receipt Account. Its a balance sheet account of which the balance is not zero at the end of period which may happen because of following reasons; 1. Goods received but not yet invoiced 2. Invoices of goods which have not yet been received. If the GR/IR clearing account balance is not zero then the balance need to be either shown as an asset or liability. In OBYC we do the customization to create accounting documents for goods received in store. When goods received in Store following entry has been passed from MM to FI: Inventory Account Dr. To GR/IR Clearing Account

At the time of receiving the Vendor invoice: GR/IR Clearing Account To Inventory Account Suppose the vendor has sent invoice only for part of the goods not for the entire amount. In this case the amount that has already been credited to GR/IR Clearing Account has not yet been completely reversed. Before preparing the balance sheet we have to take that particular amount to a particular account for disclosure purpose. Two additional accounts are created for this purpose. 1. GR/IR Clearing Adjustment Account 2. Goods delivered but not invoiced Account In the first step the GR/IR Clearing adjustment account is debited for the differential amount and the Goods delivered but not yet invoiced account is credited for the same amount. In the second step after preparing the balance sheet the above entry get reversed to nullify the transaction Where goods received but invoice not received the system passes the following entry; GR/IR Clearing Adjustment A/c Dr Dr.

To Goods Received Not Invoiced A/c Where the invoices have been received but goods not received the system passes the following entry; Goods Invoiced Not Received A/c To GR/IR Clearing Adjustment A/c Dr

To analyze the GR/IR clearing account and to carry out adjustments please follow the following path in SAP: Periodic Processing> Closing> Regroup> Clear goods/invoice received If the account has a credit balance, goods have been received but not invoiced; if the account has a debit balance, goods have been invoiced but not yet received. The program places the necessary adjustment posting. These entries are then reversed on the day as mentioned on the program run. Define Adjustment Account for GR/IR Clearing Account IMG> Financial Accounting New> General ledger Accounting New> Periodic Processing> Reclassify> Define Adjustment Account for GR/IR Clearing T Code: OBYP Note: Program RFWERE00 is used to analyze goods receipts and invoice received clearing accounts and generates adjustment posting to classify business transactions correctly for balance sheet presentation. Example: Step 1: Goods Received We have posted $ 2000 of goods received to the inventory account. The system automatically posts the transaction to the GR/IR clearing account. Accounting Entry: Inventory A/c Dr $2000 $2000

To GR/IR Clearing Account Step 2: Invoice Received

Invoice received for $ 1500 towards part of the goods delivered. Accounting Entry: GR/IR Clearing Account To Vendor A/c Step 3: GR/IR Clearing On the date of running clearing program, system transfer posting to the extent of goods delivered but not yet invoiced to the GR/IR Adjustment A/c. The offsetting entry is posted to the account used for presenting goods delivered but not invoiced (target account). Accounting entry; GR/IR Clearing Adjustment A/c Dr $500 $500 Dr $1500 $1500

To Goods received but not yet invoiced A/c Step 4: Reverse of the transfer entry

As mentioned in the clearing program system reverses the step 3 entry and the above process gets corrected. Accounting Entry: Goods received but not yet invoiced A/c To GR/IR Clearing Adjustment A/c Dr $500 $500

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