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GR/IR Clearing accounts

In SAP which accounts are posted when i am paying the vendor against the invoice.

WHAT IS THE SIGNIFICANCE OF GR/IR clearing account in SAP.

When the invoice is posted how the various accounts are posted.

I am bit confused about the concept of debit and credit.

Also whats the meaning of stock account

Former Member
Former Member replied

IMPORTANT SAP NOTES ON CONFIGURATION OF MM-FI ACCOUNT DETERMINATION & AUTOMATIC POSTINGS

What are automatic postings?

Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.

Example:

Posting lines are created in the following accounts in the case of a goods issue for a cost center:

Stock account, Consumption account

How does the system find the relevant accounts?

When entering the goods movement, the user does not have to enter a G/L account, since the R/3 System automatically finds the accounts to which postings are to be made using the following data:

Chart of accounts of the company code

If the user enters a company code or a plant when entering a transaction, the R/3 System determines the chart of accounts which is valid for the company code.

You must define the automatic account determination individually for each chart of accounts.

Valuation grouping code for the valuation area

If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas.

You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.

If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code.

Transaction/event key (internal processing key)

Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers. You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.

Account grouping (only for offsetting entries, consignment liabilities, and price differences)

Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping,

expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code.

An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting".

Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping, that is, assign G/L accounts.

If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key.

Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.

Valuation class of material or (in case of split valuation) the valuation type

The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials. You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class.

If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.

Requirements

Before you maintain automatic postings, you must obtain the following information:

1. Valuation level (plant or company code)

Establish whether the materials are valuated at plant or at company code level

When valuation is at plant level, the valuation area corresponds to a plant. When

valuation is at company code level, the valuation area corresponds to a company

code.

2. Chart of accounts and valuation grouping code per valuation area

Find out whether the valuation grouping code is active.

Activate split valuation

If it is not active, determine the chart of accounts assigned to each valuation area

(via the company code). If it is active, determine the chart of accounts and the

valuation grouping code assigned to each valuation area. Group valuation areas

You must define a separate account determination process for chart of accounts

and each valuation grouping code.

3 Valuation class per material type

If you wish to differentiate the account determination process for specific

transactions according to valuation classes, find out which valuation classes are

possible for each material type Define valuation class

4. Account grouping for offsetting entries to stock accounts

Under Define account grouping for movement types, determine for which

movement types an account grouping is defined for the transaction/event keys

GGB (offsetting entry to stock posting), KON (consignment liabilities) and PRD

(price differences).

Activities

1. Create account keys for each chart of accounts and each valuation grouping code

for the individual posting transactions. To do so, proceed as follows:

a) Call up the activity Configure Automatic Postings.

The R/3 system first checks whether the valuation areas are correctly

maintained. If, for example, a plant is not assigned to a company code, a dialog

box and an error message appear. From this box, choose Continue (next entry)

to continue the check.

Choose Cancel to end the check.

The configuration menu Automatic postings appears.

b) Choose Goto -> Account assignment.

A list of posting transactions in Materials Management appears.

For further details of the individual transactions, see Further information.

The Account determination indicator shows whether automatic account

determination is defined for a transaction.

c) Choose a posting transaction.

A box appears for the first posting transaction. Here you can enter a chart of

accounts

You can enter the following data for each transaction:

- Rules for account number assignments

With Goto -> Rules you can enter the factors on which the

account number assignments depend:

- debit/credit indicator

- general grouping (= account grouping)

- valuation grouping

- valuation class

- Posting keys for the posting lines

Normally you do not have to change the posting keys. If you

wish to use new posting keys, you have to define them in the

Customizing system of Financial Accounting.

- Account number assignments

You must assign G/L accounts for each transaction/event key

(except KBS). You can assign these accounts manually or copy

them from another chart of accounts via Edit -> Copy.

If you want to differentiate posting transactions (e.g.

inventory postings) according to valuation classes, you must

make an account assignment for each valuation class.

Using the posting transaction "Offsetting entry for inventory

posting", you have to make an account assignment for each

account grouping

If the transaction PRD (price differences) is also dependent on

the account grouping, you must create three account assignments:

- an account assignment without account grouping

- an account assignment with account grouping PRF

- an account assignment with account grouping PRA

If the transaction KON (consignment and pipeline liabilities) is

also dependent on the account grouping, you must create two

account assignments:

- an account assignment without account grouping (consignment)

- an account assignment with account grouping (pipeline)

d) Save your settings.

Then check your settings with the simulation function.

With the simulation function, you can simulate the following:

- Inventory Management transactions

- Invoice Verification transactions

When you enter a material or valuation class, the R/3 system

determines the G/L accounts which are assigned to the corresponding

posting transactions. Depending on the configuration, the SAP system

checks whether the G/L account exists

In the simulation you can compare the field selection of the

movement type with that of the individual accounts and make any corrections.

If you want to print the simulation, choose Simulation -> Report.

To carry out the simulation, proceed as follows:

a) Choose Settings to check the simulation defaults for

- the application area (Invoice Verification or Inventory

Management)

- the input mode (material or valuation class)

- account assignment

Instructions

b) Choose Goto -> Simulation.

The screen for entering simulation data appears.

c) Depending on the valuation level, enter a plant or a company

code on the screen.

d) When you simulate Inventory Management transactions, goods

movements are simulated. The R/3 system suggests the first

movement type for simulation. If several movements are possible

with this movement type, you can select a line.

When you simulate Invoice Verification transactions, a list

appears on the screen of the possible transaction types. Select

a line.

e) Then choose Goto -> Account assignments.

A list appears of the posting lines which can be created by the

selected transaction. For each posting line, the G/L account for

the debit posting as well as the G/L account for the credit

posting are displayed.

f) From this screen, choose Goto -> Movement+ to get a list of the

posting lines for the next movement type or transaction type.

This will give u some idea abt GR/IR. Reward if useful.

Regards

Ravi

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