What is a GR/IR clearing account (goods receipt/invoice receipt clearing account)? | TechTarget
Summary
How a GR/IR clearing account is used In the normal course of business, discrepancies often exist between goods received and quantity invoiced for a purchase order (PO). Despite its seemingly disparate business functions, SAP ERP provides a single source of truth that enables companies to streamline and manage these functions, improve operational efficiency and enhance day-to-day workflows. Specifically, the function can be used to clear two accounts: • Purchases in transit refers to invoiced but not yet received goods or services. • When S delivers 100 P, SAP ERP posts the goods receipt to the relevant asset account. • Example 2: Supplier S delivers an invoice for 100 pieces of Product P to Company C • The total value of 100 P is $1,000, and the price per unit of P is $10.