gr/ir

[Former Member]

what purpose we can maintain the GR/IR account?

[Former Member · Accepted solution]

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

[Former Member · Accepted solution]

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.