GR/IR, GL account and Offsetting entry

[Former Member]

I want to know the meaning of GR/IR account GL account and offsetting entry.

In MM, what is the role for the above accounts.

[former_member183378]

Hello Babu,

Please go through the below link which is explains the GR/IR clearing account clearly.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/96/8b328343ce11d189ee0000e81ddfac/content.htm?frame...

I hope it helps!

Thanks & Regards,

Lakshmi S

[Former Member]

GR IR Account is an intermediate account created while raising Goods
Received Notes (GRN).
The account gets cleared after the Invoice (IV) is done.

After GRN is raised:
Dr. Expenditure A/c
Cr. GR/IR A/c

After IV is done:
Dr. GR/IR
Cr. Vendor A/c

After payment
Dr. Vendor A/c
Cr. Bank

If GR IR is high it shows that the Company has a high liability.
It also states that the IV is not done in time.
It can be reduced by doing the IV in time.

G/L Accounts are created and maintained by Finance department to capture/accumulate  the value of the material Stocks or services revenue etc...

GR IR account is also an offsetting account...

[Former Member]

GR/IR - Good Receipt/Invoice Receipt account. It is a clearing account and will come in MIGO while goods receipt from vendor. You will not pay your vendor immediately when you receive goods, so you will credit in a clearing account and the debot the same account while MIRO.

Offsetting entry = Balancing entry ex: GR/IR account

MIGO Account

inventory account debtor

to GR/IR clearing account

miro

GR/IR clearing account

to vendor account

so, here original entry is

inventory account debtor

to vendor account

here GR/IR clearing account is offsetting entry

[Former Member]

Hi,

An accounting transaction is complete when there is at least one debit and corresponding credit entries to that transaction.This example will explain the Offsetting Account :

Purchased goods Accounting Entry :

Material Account Dr,

GR/IR Account Cr.

In this case , Material  Account is the Offsetting Account for GR/IR Account and GR/IR Account is the offsetting Account for Material Account.

Quantity differences between goods receipt and invoice receipt for a purchase order result in a

balance on the GR/IR clearing account.

http://help.sap.com/saphelp_45b/helpdata/en/96/8b328343ce11d189ee0000e81ddfac/content.htm

Thanks.