GR/IR Clearing Account Regrouping in SAP

What is GR/IR Clearing Account?

The goods receipt/ invoice receipt or popularly called GR/IR Clearing Account is a provision account and is posted whenever you receive goods that have not been invoiced yet or whenever you receive invoices for goods that have not been delivered yet.

GR/IR Account Maintenance

In this activity, we define the adjustment numbers and target accounts for the automatic postings for the GR/IR clearing account.

Transfer postings have to be made at the balance sheet date to reflect the goods invoiced but not delivered and goods delivered but not invoiced.

The Transaction Code – F.19 analyzes the GR/IR clearing account and posts adjustments entries for outstanding amounts to adjustment accounts. It makes the offsetting entry to the account for goods delivered but not invoiced or to the account for goods invoiced but not delivered (Target account).

GR/IR clearing regrouping Configuration

Following are the steps to configure GR/IR clearing account in SAP.

Create Accounts for GL Master

Noteworthy, all these accounts for GL Master will be the Balance sheet accounts. Following are the accounts that you need to create.

• GR/IR Account – 1505
• Adjustment Account – 1513
• GR/IR Invoiced but not Received – 1514
• GR/IR Shipped Not Invoiced – 1515

Also read: Master Data in SAP FICO

Define Adjustment for GR/IR account

Next, you need to define the adjustment for GR/IR accounts.

1. Here first, follow the below steps:-

IMG=> Financial Accounting (New)=> General Ledger Accounting (New)=> Periodic Processing=> Re-classify=> Define Adjustment Accounts for GR/IR clearing

2. Second, Double Click on the Group WRV as shown in the image.

3. Further, update the Chart of Accounts section.

4. Next, Press Back.

5. Now Double click here.

End-User activity in GR/IR clearing account configuration

In this process, there are some End-user roles that they need to perform. These are:-

1. Create Purchase Order # 4500023887
2. Create Purchase Order # 4500023888
3. For PO # 4500023887, Process Goods Receipt Tcode MIGO
4. System will automatically generate Accounting Document

5. For PO # 4500023888, Process Invoice Tcode MIRO

Important to note:- The GR/IR balances are to be regrouped as a month-end activity. To do this regrouping, use Transaction Code- F.19

Final output options for GR/IR clearing account regrouping

Here we have three options. I show below each one with its respective image.

1. Goods Received

In case the goods are received, the final output of all these configurations is the Adjustment account for GR/IR, which will look like this.

Also Read: Receivables Management in SAP HANA

2. Invoice received but goods not received

In case GR/IR Invoice received but goods not received. the final output will look like the below.

3. GR/IR shipped to Invoice

The output for GR/IR that is shipped to the invoice will look as below.

Also Read: MM Closing Activities in SAP S/4HANA Finance

EndNote

If you are a FICO consultant, you must know these adjustment entries. The Goods receipts/invoiced account is an important part of SAP FICO. Additionally, interviewers frequently ask questions on GR/IR. Moreover, there are high chances that in real projects, you need to do these adjustments. Thus, I recommend you to learn GR/IR regrouping deeply.

Watch Related Video: GR/IR Regrouping Video by Pradeep Hota