GR/IR (Goods Receipt/Invoice Receipt)Category: SAP FICO Posted:Jun 22, 2020 By: Ashley Morrison
GR/IR is the SAP process to execute the three-way match- purchase order, Material Receipt, as well as vendor invoice. You use a clearing account to record the offset of the Goods Receipt (GR) and Invoice Receipt (IR) postings. As soon as completely processed, the postings in the cleaning account balance.
The clearing is executed at the Purchase Order (PO) line item level based on the quantity entered. Price variation, as well as exchange rate variance, are calculated. You can write off little differences utilizing transaction MR1.
Purchase Price Variance
This discussion assumes you are using Standard Price Control (S) for purchased materials. The amount and quantity of the GR and IR postings are necessary. You must have posted GR to record Purchase Price Variance (PPV). There is no PPV posting for simply IR. There can be added variation postings on IR after GR is posted for distinctions in between PO price and the actual price paid.
When posting GR, the price variation is based on the PO Price, unless IR has already been posted, then it is based on actual price paid. If IR has already been posted, the GR will be based on the IR up to the quantity of the IR, after that, it will use the PO price again.
After all postings to a PO line item, the net PPV posted will be the difference between the actual price paid and the standard price of the material.
General Ledger Account Determination
- G/L Accounts are specified with MM Account Determination IMG Transaction OBYC/ Table T030.
- Qualities include Valuation Class, as specified in the material master Accounting 1 view.
- GR/IR accounts are defined with Transaction WRX.
- Price Variance Accounts are specified with Transaction PRD.
You can restate balances in these G/L accounts as inventory or payables at month-end with transaction F. 19. The accounts are specified in table T030U and set with configuration transaction OBYP.
- Debit balances (T030U deal BNG – Invoiced not yet provided) are mapped to Stock G/L Accounts.
- Credit balances (T030U purchase GNB – Provided but not yet invoiced) are mapped to Payable G/L Accounts.
Exchange Rate Variance
For materials purchased in a foreign currency, you can map variance because of exchange rate difference to a different G/L account with the configuration in IMG menu path: Material Management > Logistic Invoice Verification > Incoming Invoice > Configure How Exchange Rate Differences are Dealt With.
You can map variance because of the exchange rate change to separate G/L accounts with MM Account Determination Transaction KDM.
You can choose from several choices to manage how exchange rate differences are handled for invoices in foreign currencies. One of these calculates the exchange rate variance as the distinction between the existing exchange rate at the time of invoice processing and the plan exchange rate for the year.
Tools/Reports for GR/IR as well as PPV
SAP offers the following transactions for GR/IR processing and reporting:
- FBL3N G/L Account Line Item Display.
- ME23N Display PO (PO History tab, recommend using of Chronological Order function).
- MR11 GR/IR Account Maintenance.
- MB5S List of GR/IR Balances.
- FS10N G/L Account Balance Display.
- F. 13 Automatic Cleaning (clear on PO/item combination).
- F. 19 Analyze GR/IR Account and Accrual.
- MR11SHOW Display/Reverse MR11 document.
- CKM3N- Material Price Analysis.
- KKML0– Product Ledger Drilldown Reporting.
Hope this blog article has touched the essential part of the GR/IR (Goods Receipt / Invoice Receipt) and this will help in your career as well.
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