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GR/IR (Goods Receipt / Invoice Receipt) Processing

Ross Christoph 2017GR/IR is the SAP process designed 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 and invoice receipt postings.  Once fully processed the postings in the clearing account will balance.

This balancing is performed at the Purchase Order Line Item based on the quantity entered on these documents.  Price variance is calculated and recorded with these posting; exchange rate variance can be as well.  Small differences can be written off using transactions MR1.

Price Variance
This discussion assumes the purchased materials are using Price Control S (Standard) and not V (Moving Average).

The quantity, as well as the amount, on the Goods Receipt and Invoice Receipt postings is important.  To record to Purchased Price Variance (PPV), Goods Receipt must have been posted.  For Invoice Receipts only, there is no posting to price variance.  There can be additional variance postings on Invoice Receipts after Goods Receipts are posted for differences between the PO price and actual price paid.

When postings Goods Receipts, the price variance is based on the PO price, unless Invoice Receipt has already been posted, then it is based on actual price paid.    If Invoice Receipt has already been posted, the Goods Receipt will be based on the Invoice Receipt up to the quality of the IR, after that is will use the PO price again.

After all postings have been recorded to a Purchase Order 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, which is defined in the material master (Accounting 1 view).
GR/IR Accounts are defined with Transaction WRX.
Price Variance Accounts are defined with Transaction PRD.

Month-end Restatement
Balances in these G/L accounts can be restated as inventory or payables at the end of the month using transaction F.19.    The accounts are defined in table T030U and are set through configuration transaction OBYP.   Debit balances (T030U transaction BNG - Invoiced but not yet delivered) should be mapped to Inventory G/L Accounts.  Credit balances (T030U transaction GNB - Delivered but not yet invoiced) should be mapped to Payable G/L Accounts.

Exchange Rate Variance
For materials that are purchased in a foreign currency, any variance related to the change in exchange rate can be mapped to a different G/L Account other than Price Variance through system configuration. The configuration is located in the IMG in the menu path: Material Management > Logistic Invoice Verification > Incoming Invoice > Configure How Exchange Rate Differences are Treated

The variance related to the change in exchange rate can be mapped to separate G/L Accounts which are defined with MM Account Determination Transaction KDM.

There are several options to control how exchange rate differences can be handled for invoices in foreign currencies; one of these calculates the exchange rate variances 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 these tools for GR/IR processing and reporting for price variance:

  • 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

 

 

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Comments 3

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Guest - brong on Thursday, 27 December 2018 04:37

when i run analyzed GR-IR how can i know from what's suppliers and PO?

when i run analyzed GR-IR how can i know from what's suppliers and PO?
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Tuesday, 21 May 2019