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Total variances through IR

Former Member
0 Kudos

Hi experts,

Could some one explain me when the 'Total variances through IR' are generated?

We have a case of a PO in Foreign currency for quantity of 1.

This PO was invoiced before being received.

When received, the GR value does not match the invoice value.

The total GR value is adjusted with a 'Total variances through IR'. The total goods receipts does match the invoice value.

I tried to look for possible different currency rates,but the documents have the same currency - PO and invoice and GR -

Thank you.

Monica.

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

Hi Monica,

When the invoice was posted prior to the receiver the entries will be

Invoice Receipt

Debit GR/IR Clearing

Credit Supplier Vendor

then Goods Receipt

Debit Inventory account

credit GR/IR Clearing

debit Variance

then clear the variance

debit Vendor

credit variance

assign points if useful

Regards

Genie