gr/ir clearing account?

[Former Member]

hi

when i do good receipt against purchase order gr/ir clearing account is credited and inventory account is debited.please explain me in detail about gr/ir clearing account.if there will be no gr/ir clearing account what will happen.

regards

sanjay

[Former Member · Accepted solution]

in the finance terms there will be always credit against debit to make the balance so when you do GR stock account is debit and GR/IR account is credit. when you do invoice verification GR/IR account is debit and vendor account is credit, so in this way GR/IR account is zero, in the same way when we pay to vendor there will entry of debit and an bank account will be credit. these are standard business practice.

regards,

qsm sap

[Former Member]

thanks

[Former Member]

Hi Sanjay,

BSX: It is used for inventory postings...ie. whenever inventory account is req. to be hit it is auto used by the system to update the account...

GBB : Offsetting entries to the inventory postings...

PRD: Price difference account...for eg: If the std price is 5 in the MMR and you post the GR at 6 then if the material is managed at he std price then PRD is hit and difference is posted tothe PRD account ie 1 is posted to PRD...

WRX : GR/IR clearing account...for eg: if you got the material then there is increase in the GR/IR balance....but this account is cleared when you pay to vendor the material obtained....eg: If PO is made for 2 pcs...then if GR is done for 2 pcs, then GR/IR account at the GR for Price * number of Pcs...

Example 1

u2022 Posting made in the case of goods receipt (GR) to purchase order (PO):

Inventory account GR/IR Clearing Account

Debit Credit Debit Credit

500 500

We need to update the BSX transaction key (Inventory posting) with the GL code Inventory account

and WRX ( GR/IR Clearing) WRX transaction key with the GL code GR/IR Clearing account.

Example 2

1. Cost of Goods Sold Dr 100 (T-Key GBB)

To Inventory Account Cr 100 (T-Key BSX)

Hope its clear...

Regards,

Rahul.

[raghavendra_praveen]

Hi

GR/IR clearing account is an intermediate balance sheet account whose balance should be always zero. We define posting key for this account - 86 as debit and 96 as credit entry.

Same postings keys will be maintained for WRX account in OBYC and we will assign GL account (say GL acccounts) for this account. MM movement types value strings will decide posting to this account as debit will be stock and credit will be GR/IR account.

When you post invoice GR/IR account will be debited and vendor account will be credited & net balance on this account will be zero.

Thanks