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Former Member

gr/ir

what purpose we can maintain the GR/IR account?

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    author's profile photo Former Member
    Former Member
    Posted on Apr 26, 2007 at 03:50 PM

    Hi

    GR/IR stands for goods receipt/invoice reciept.

    Sometimes from ur vendor u will receive goods but not invoice, during such times,the GR/IR account is credited with amount and once invoice is received, the GR/IR a/c gets debit.

    The GR/IR account is maintained on open item basis and cleared during month ends normally.

    Assign points if helpful

    Regards

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    • Former Member

      More explanation:

      Hi,

      GR/IR stands for Goods Receipt/Invoice Receipt. Its clearing account which mean when Goods are Received (Stock entry) it is credited and when the corresponding invoiced is received (against GR) it debited, basically nullifying each other.

      Instead of a normal

      Stock Dr

      Vendor Cr

      it goes like

      Stock Dr

      GR/IR Cr

      &

      GR/IR Dr

      Vendor Cr.

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