FI-MM integrations(GR/IR Clearing a/c)

Question

Hi All,
I face one interview question from the one of the interview. I.e.
What is GR/IR clearing a/c? what is the purpose to use GR/IR Clearing a/c? for these questions i have answered but Immediately the interviewer ask  me ask me.
If i Receipt Good with Invoice what is the need of GR/IR Clearing account?
Can any one elaborate if we got this type of situation what is the process? how can we deals in SAP? what is the Exactly use of GR/IR Clearing a/c in FI-MM integration
Thanks & Regards,
Sreehari. Tokala.

Answer 1

Hi Sreehari,
As you know GR/IR clearing is northing but Goods Receipt Invoice Receipt clearing Account. Even if you get Goods Receipt with Invoice Receipt, Still GRIR clearing Account is required. I will tell you why..
Goods Receipt is generally done by Store keeper at stores through MIGO T.code. Moment GRN is  done, Accounting entry  shall be generated automatically based on FI-MM Integration. As you know entry will be,
Inventory Account Dr - Asset
GRIR A/c Cr. - Liability
At the time of GRN itself liability will be created. While doing Invoice booking GRIR will be debited and Vendor will be credited. This entry will be booked by normally accounts person who knows to which vendor the liability should be assigned.
As you cannot expect a stores person to pass accounting entry system will create asset and liability whereas while doing invoice booking accounts person will assign that liability to the correct vendor. Apart from there could be reason of price difference, or debit note to be adjusted to vendor which can only be done by accounts person. So without GRIR you cannot directly debit stock and credit vendor.
That is the reason why you need a GRIR account even if goods is received with invoice.
Hope this clarifires you.
Regards
Karthikeyan G