This document will explain you how the GR/IR clearing process works in MM System with screenshots. I have worked on SRM 7 extended classic scenario connected to multiple backend systems. You can diagnose various issues like below by having the knowledge of GR/IR Clearing process:
Service entry sheet went to error in process in SRM.
Confirmation went to error in process.
Not able to post reversal document for confirmation
Confirmation value is different in history tab of PO and in actual confirmation document.
Definitions:
Quantity differences between goods receipt and invoice receipt for a purchase order result in a balance on the GR/IR clearing account.
User can post an account maintenance document explicitly in order to manage the GR/IR Clearance.
Process:
Created a SHC in the SRM, PO is created after approval in the SRM and replicated to the backend.
![kuchbhi dede.png]()
Posted a GR from SRM and Invoice in the ECC.
Note: In case of Service PO, a service entry has been posted in the the backend along with the GR Document
![2new.png]()
Open the GR material document -> FI Documents. Here accounting document is relevant for our analysis.
![3.png]()
As we can see here under accounting document below two transactions occurred when GR was posted.
1. Transaction in material account = 1760.00 Debited
2. Transaction in GR/IR account = 1760.00- Credited (Negative value is credited which user needs to clear by posting an invoice)
![Untitled.png]()
We can see the type of account by search help in posting key.
![5.png]()
Now lets check the transaction occurred during invoice posting for the same.
Open the Invoice material document -> Follow-on Documents
![6.png]()
We can see here 3 transaction occurred
1. Transaction in GR/IR account =1760.00 Debited (Which makes the GR Account 0)
2. VAT Tax = 21% of Invoice Approx. Debited
3. Transaction in vendor account = both 1 and 2 transaction amounts gets added and generate a transaction in vendor account 2129.60- Credited (Vendor needs to clear this value by posting a check)
![7.png]()
The process will end after the vendor account clearance.
In a nut shell everything needs to be balanced in terms of transaction. There should be a debit for each credit and vice versa.
- If the quantity invoiced is larger than the quantity received, the system then expects further goods receipts for this purchase order to clear the balance.
- If the quantity received is larger than the quantity invoiced, the system then expects further invoices for this purchase order to clear the balance.
- You can also clear differences for delivery costs.
I have received an issue where user had posted a account maintenance document explicitly after the GR in order to clear the GR amount in the backend and then tries to post a reversal confirmation document in the SRM which goes to error in process. This is expected because user already clears (reverse the GR) in the backend via account maintenance document.
Hope you are now clear with the account clearance concepts. Kindly let me know your inputs or queries regarding this in the comments.
Thanks for reading this document. Have a nice learning
