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GR IR Clearing


Here is one scenario.

PO qty 10 Nos

Price 2/Euro each

Exchange Rate at the time of GR is 50/-INR per 1 Euro

Then GR Qty 10 Nos

Acct Document

Inventory Dr 20 Euro Rs.1000/-INR

GR/IR Clg Cr 20 Euro Rs.1000/-INR

Exchange Rate at the time of IR is Rs55/-INR per 1 Euro

Stock at the time of IR is 5 Nos

As per Standard the Posting should be

Vendor Cr 20 Euro Rs.1100 INR

GR/IR Dr Rs. 1000 INR

Inventry Dr Rs. 50 INR

Price diff Dr Rs. 50 INR.


But in system the postings are

Vendor Cr Rs.1100/-INR

GR?IR Dr Rs.1050/-INR

Inventory Dr Rs. 12.50/INR

Price Diff Dr Rs 37.50/-INR

Hence even after i cleared the Vendor due In GR IR clg GL account Balance will be there.

Why it is like this?

Any settings are required.

Please help me.



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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jan 09, 2008 at 08:18 AM

    Dear all

    you have to in configuration setting whether Invoice has to done at Exchange rate at the time of PO or Fixed exchage rate

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    • Former Member prasad b


      when u activate the exchange indicator in PO header, correct exchange rate as per GR(PO) will catch teh same in GR IR clearing account.

      coming on to ur second point, when the stock is not available in plant, it will hit the PRICE DIFFERANCE account, as u cant ost the same in inventory account, other wise ur MAP will effect.

  • author's profile photo Former Member
    Former Member
    Posted on Jan 09, 2008 at 09:12 AM

    Hi Prasad,

    System will calculates based on standard price or MAP.

    it will calculae as per the formulae.

    Please refer LIV > Invoice with varience >Posting price varience-->Matl with std. price and matl with MVP.

    Please go through this link and read well,surely u wil understand well.

    Refer the below link for details.


    It will solve ur problem,

    Revert back if any doubts,

    Reward if useful.



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    • Hi,


      You also can observe from that note/link you have sent in that also GRIR clg account Cr (at the time of GR) and Dr amount (at the time of IR) are same no changes because of price variance.

      And it was mentioned also that

      *Invoice Receipt

      The GR/IR clearing account is cleared on the basis of the purchase order price. The offsetting entry is posted to the vendor account based on the invoice price.

      The invoice price is different to the purchase order price: The variance between the purchase order value and the invoice value is posted to the stock account only for the actual stock.*

      There may be setting elsewhere?


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