GR/IR Clearing accounts

Question

In SAP which accounts are posted when i am paying the vendor against the invoice.
WHAT IS THE SIGNIFICANCE OF GR/IR clearing account in SAP.
When the invoice is posted how the various accounts are posted.
I am bit confused about the concept of debit and credit.
Also whats the meaning of stock account

Answer 1

IMPORTANT SAP NOTES ON CONFIGURATION OF MM-FI ACCOUNT DETERMINATION & AUTOMATIC POSTINGS
                                                                                What are automatic postings?                                                                               
Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.                
Example:                                                                               
Posting lines are created in the following accounts in the case of a goods issue for a cost center:                                                                               
Stock account, Consumption account
                                                                                How does the system find the relevant accounts?                                                                               
When entering the goods movement, the user does not have to enter a G/L account, since the R/3 System automatically finds the accounts to which postings are to be made using the following data:                                                                               
Chart of accounts of the company code                                        
If the user enters a company code or a plant when entering a transaction, the R/3 System determines the chart of accounts which is valid for the company code.                                               
You must define the automatic account determination individually for each chart of accounts.         
Valuation grouping code for the valuation area
If the automatic account determination within a chart of accounts is to run differently for certain company codes or plants (valuation areas), assign different valuation grouping codes to these valuation areas.         
You must define the automatic account determination individually for every valuation grouping code within a chart of accounts. It applies to all valuation areas which are assigned to this valuation grouping code.        
If the user enters a company code or a plant when entering a transaction, the system determines the valuation area and the valuation grouping code.           
Transaction/event key (internal processing key)
Posting transactions are predefined for those inventory management and invoice verification transactions relevant to accounting. Posting records, which are generalized in the value string, are assigned to each relevant movement type in inventory management and each transaction in invoice verification. These contain keys for the relevant posting transaction (for example, inventory posting and consumption posting) instead of actual G/L account numbers. You do not have to define these transaction keys, they are determined automatically from the transaction (invoice verification) or the movement type (inventory management). All you have to do is assign the relevant G/L account to each posting transaction.        
Account grouping (only for offsetting entries, consignment liabilities, and price differences)                               
Since the posting transaction "Offsetting entry for inventory posting" is used for different transactions (for example, goods issue, scrapping, physical inventory), which are assigned to different accounts (for example, consumption account, scrapping,                          
expense/income from inventory differences), it is necessary to divide the posting transaction according to a further key: account grouping code.                       
An account grouping is assigned to each movement type in inventory management which uses the posting transaction "Offsetting entry for inventory posting".                     
Under the posting transaction "Offsetting entry for inventory posting", you must assign G/L accounts for every account grouping, that is, assign G/L accounts.                       
If you wish to post price differences to different price difference accounts in the case of goods receipts for purchase orders, goods receipts for orders, or other movements, you can define different account grouping codes for the transaction key.                        
Using the account grouping, you can also have different accounts for consignment liabilities and pipeline liabilities.
Valuation class of material or (in case of split valuation) the valuation type
The valuation class allows you to define automatic account determination that is dependent on the material. for example: you post a goods receipt of a raw material to a different stock account than if the goods receipt were for trading goods, even though the user enters the same transaction for both materials. You can achieve this by assigning different valuation classes to the materials and by assigning different G/L accounts to the posting transaction for every valuation class.        
If you do not want to differentiate according to valuation classes you do not have to maintain a valuation class for a transaction.
Requirements                                                                               
Before you maintain automatic postings, you must obtain the following information:                                                                               
1.  Valuation level (plant or company code)                                       
    Establish whether the materials are valuated at plant or at company code level                                                                    
    When valuation is at plant level, the valuation area corresponds to a plant. When     
    valuation is at company code level, the valuation area corresponds to a company
    code.                   
2.  Chart of accounts and valuation grouping code per valuation area                            
    Find out whether the valuation grouping code is active.                                     
    Activate split valuation                                                                    
    If it is not active, determine the chart of accounts assigned to each valuation area 
    (via the company code). If it is active, determine the chart of accounts and the
    valuation grouping code assigned to each valuation area. Group valuation areas
   You must define a separate account determination process for chart of accounts
   and each valuation grouping code.                                                                               
3     Valuation class per material type                              
    If you wish to differentiate the account determination process for specific
    transactions according to valuation classes, find out which valuation classes are
   possible for each material type Define valuation class
4.  Account grouping for offsetting entries to stock accounts                                   
    Under Define account grouping for movement types, determine for which
    movement types an account grouping is defined for the transaction/event keys
    GGB (offsetting entry to stock posting), KON  (consignment liabilities) and PRD
    (price differences).                        
   Activities                                                                               
1.     Create account keys for each chart of accounts and each valuation grouping code
      for the individual posting transactions. To do so, proceed as follows:                                                                               
a)     Call up the activity Configure Automatic Postings.                            
         The R/3 system first checks whether the valuation areas are correctly
         maintained. If, for example, a plant is not assigned to a company code, a dialog
         box and an error message appear. From this box, choose Continue (next entry)
         to continue the check.                   
         Choose Cancel to end the check.                                               
         The configuration menu Automatic postings appears.                                                                               
b)  Choose Goto -> Account assignment.                                            
         A list of posting transactions in Materials Management appears.               
         For further details of the individual transactions, see Further information.             
         The Account determination indicator shows whether automatic account
         determination is defined for a transaction.                                                                               
c)  Choose a posting transaction.                                                 
         A box appears for the first posting transaction. Here you can enter a chart of
        accounts
You can enter the following data for each transaction:                                                                               
-   Rules for account number assignments                                            
     With Goto -> Rules you can enter the factors on which the                       
     account number assignments depend:                                              
     - debit/credit indicator                                                        
     - general grouping (= account grouping)                                         
     - valuation grouping                                                            
     - valuation class                                                                               
-   Posting keys for the posting lines                                              
     Normally you do not have to change the posting keys.  If you                    
     wish to use new posting keys, you have to define them in the                    
     Customizing system of Financial Accounting.                                                                               
-   Account number assignments                                                      
     You must assign G/L accounts for each transaction/event key                     
     (except KBS). You can assign these accounts manually or copy                    
     them from another chart of accounts via Edit -> Copy.                           
     If you want to differentiate posting transactions (e.g.                         
     inventory postings) according to valuation classes, you must                    
     make an account assignment for each valuation class.                            
     Using the posting transaction "Offsetting entry for inventory                   
     posting", you have to make an account assignment for each                       
     account grouping
If the transaction PRD (price differences) is also dependent on            
      the account grouping, you must create three account assignments:           
      - an account assignment without account grouping                           
      - an account assignment with account grouping PRF                          
      - an account assignment with account grouping PRA                          
      If the transaction KON (consignment and pipeline liabilities) is           
      also dependent on the account grouping, you must create two                
      account assignments:                                                       
      - an account assignment without account grouping (consignment)             
      - an account assignment with account grouping (pipeline)                                                                               
d)  Save your settings.                                                                               
Then check your settings with the simulation function.                         
  With the simulation function, you can simulate the following:                                                                               
-   Inventory Management transactions                                                                               
-   Invoice Verification transactions                                          
  When you enter a material or valuation class, the R/3 system                   
  determines the G/L accounts which are assigned to the corresponding            
  posting transactions. Depending on the configuration, the SAP system           
  checks whether the G/L account exists                                          
  In the simulation you can compare the field selection of the                   
  movement type with that of the individual accounts and make any corrections.                                                                    
  If you want to print the simulation, choose Simulation -> Report.               
  To carry out the simulation, proceed as follows:                                                                               
a)  Choose Settings to check the simulation defaults for                        
      - the application area (Invoice Verification or Inventory                   
      Management)                                                                 
      - the input mode (material or valuation class)                              
      - account assignment                                                        
      Instructions                                                                               
b)  Choose Goto -> Simulation.                                                  
      The screen for entering simulation data appears.                                                                               
c)  Depending on the valuation level, enter a plant or a company                
      code on the screen.                                                                               
d)  When you simulate Inventory Management transactions, goods                  
      movements are simulated. The R/3 system suggests the first                  
      movement type for simulation. If several movements are possible             
      with this movement type, you can select a line.                             
      When you simulate Invoice Verification transactions, a list                 
      appears on the screen of the possible transaction types. Select             
      a line.
e)  Then choose Goto -> Account assignments.                                          
    A list appears of the posting lines which can be created by the                   
    selected transaction. For each posting line, the G/L account for                  
    the debit posting as well as the G/L account for the credit                       
    posting are displayed.                                                                               
f)  From this screen, choose Goto -> Movement+ to get a list of the                   
    posting lines for the next movement type or transaction type.                     
This will give u some idea abt GR/IR. Reward if useful.
Regards
Ravi