GR/IR is the SAP process to perform the three-way match – purchase order, material receipt, and vendor invoice. It uses a clearing account to record the offset of the goods receipt (GR) and invoice receipt (IR) postings. Once fully processed the postings in the clearing account will balance.
Clearing is performed at the purchase order (PO) line item level based on quantity entered. Price variance is calculated and recorded, along with exchange rate variance. You can write off small differences using transaction MR1.
Purchace Price Variance
This discussion assumes you are using standard price control (S) for purchased materials. The quantity and amount on the GR and IR postings are important. You must have posted GR to record purchase price variance (PPV). There is no PPV posting for just IR. There can be additional variance postings on IR after GR is posted for differences between PO price and actual price paid.
When posting GR, the price variance is based on the PO price, unless IR has already been posted, then it is based on actual price paid. If IR has already been posted, the GR will be based on the IR up to the quantity of the IR, after that is will use the PO price again.
After all postings to a PO line item, the net PPV posted will be the difference between the actual price paid and the standard cost of the material.
General Ledger Account Determination
G/L Accounts are defined with MM Account Determination IMG Transaction OBYC / Table T030.
Attributes include Valuation Class, as defined in the material master Accounting 1 view.
GR/IR accounts are defined with Transaction WRX.
Price Variance Accounts are defined with Transaction PRD.
You can restate balances in these G/L accounts as inventory or payables at month end with transaction F.19. The accounts are defined in table T030U and set with configuration transaction OBYP.
- Debit balances (T030U transaction BNG - Invoiced not yet delivered) are mapped to Inventory G/L Accounts.
- Credit balances (T030U transaction GNB - Delivered but not yet invoiced) are mapped to Payable G/L Accounts.
Exchange Rate Variance
For materials purchased in a foreign currency, you can map variance due to exchange rate difference to a different G/L account with configuration in IMG menu path: Material Management > Logistic Invoice Verification > Incoming Invoice > Configure How Exchange Rate Differences are Treated.
You can map variance due to exchange rate change to separate G/L accounts with MM Account Determination Transaction KDM.
You can choose from several options to control how exchange rate differences are handled for invoices in foreign currencies. One of these calculates the exchange rate variance as the difference between the current exchange rate at the time of invoice processing and the plan exchange rate for the year.
Tools/Reports for GR/IR and PPV
SAP provides the following transactions for GR/IR processing and reporting:
- FBL3N G/L Account Line Item Display
- ME23N Display PO (PO History tab, suggest using of Chronological Order function)
- MR11 GR/IR Account Maintenance
- MB5S List of GR/IR Balances
- FS10N G/L Account Balance Display
- F.13 Automatic Clearing (clear on PO/item combination)
- F.19 Analyze GR/IR Account and Accrual
- MR11SHOW Display/Reverse MR11 document
- CKM3N – Material Price Analysis
- KKML0 – Material Ledger Drilldown Reporting