GR IR Account Maintenance for past due goods receipt

Question

Basically, we have open GRs dating back to 2003. We are hesitant to perform MR11 since this will affect the valuation of the materials as they are all set to MAP (moving average price)
Aside from that, in cases wherein the GR'ed material has already been issued out of the plant, the additional value incurred from the GR/IR account maintenance will then be affecting both the MAP and the Price Difference Account
What we plan to do here is to set up a GR/IR Adjustment Payable Account and map it to the accounts that will be affected. However, we have to make sure that we capture all the possible accounts that will be affected and replace it with this created GL Account. Upon execution of MR11, all differences will be dumped into this account. Once done, we revert back to the old configuration and then just reconcile the differences in FI
Any comments?

Answer 1

Hi,
We have already implemented the solution for the open POs dating a year older. It seemed ok since our users were able to sign off the results. Here were the steps that we undertook:
1. Created a dummy GR/IR Reconciliation Account in FI - basically this will act as a sink wherein all the discrepancies will be dumped.
2. Changed the Material Valuation from V to S - in this way, when we reconcile the POs via MR11, the entries will post to the Price difference Account
3. Change the automatic account postings to map to the FI account in 1 - in this way, all preice differences resulting from the MR11 maintenance will only be adjusted to one account
4. Perform MR11
5. Once all the open POs were closed, our FI team then performs JVs from the GR/IR Recon Account to the respective Accounts that need to be corrected.
6. Revert back to old settings for both material and automatic postings
NOTE: We scheduled a lock out to prevent any users from transacting. Only I was allowed access to the system to perform the task.
I do not know if this will apply to your scenario as well but i do hope this helps