GR/IR not cleared Error

[Former Member]

Hi Guys,

while doing GR/IR clearing for certain documents,we are getting error.

The error log says " No clearing procedures were carried out "

Please advise..

thanks

srikanth..

[Former Member]

HI ,

GR/ IR Clearing is done by f.13, Before have you done MIGO & MIRO , Please elobrate >

[Former Member]

Hi arun,

Can u tell me why we do this clearing?

What is the purpose of this..and can u please add something on MIGO And MIRO.

I am not very good at PO. It looks very confusing to me ( the screen itself ).

thanks,

srikanth

[praveen_jagadeesan]

Dear Srikanth,

MIGO will be done at the time of getting reciept of material to our factory gate , wen we process MIGO entry will be passed is

Inventory A/C dr

To GR/IR Clearing A/c Cr

And at the time of doing MIRO that is invoice verification, we will use that Purchase order no for processing MIRO, the entry will be

GR/IR clearing A/c Dr

To vendor A/c Cr

So we have to knock off the GR/IR clearing account one debit and credit so that the clearing account will have zero balace.

If you got some open items in GR/IR Clearing account if is credit it will be of MIGO and debit side it will be of MIRO so you can verify and clear the accounts if you have debit and equavelant credit.

Hope it will clarify you.

Thanks and regards

[Former Member]

Hi,

Thanks so much for the reply. It gives me an idea of the process,

but how does automatic clearing help?

say we have a debit on the GR/IR ( an open item ). How will automatic clearing clear it unless we receive the invoice?

thanks...

srik..

[praveen_jagadeesan]

Check the Transaction code OB74, wer u can find the GL accounts maintained for Automatic clearing program and the Critierias for clearing the same, Example if the assignment column of the MIGO and MIRO document is same means it can be cleared thru automatic program.

Like this u can assign criterias for clearing the GL accounts.

The GR/IR clearing account shud have corresponding credit against an Debit and Vice versa then only automatic clearing program will help u.

Hope it is useful to you.

Thanks and regards

Edited by: Aspire FICO on Jul 31, 2008 2:52 PM

[Former Member]

Hi,

Thanks so much..

Do we have lot of GR/IR accounts in the system?

Each PO when u do MIGO or MIRO how does it get attached to a GR/IR account?(seperate for each PO? )

thanks

srik..

[praveen_jagadeesan]

Dear Srikanth,

PO doesnt have any impact on hitting ur GL accounts, only wen u process MIGO ur first entry will be posted to your books.

The main purpose of having clearing accounts is to have control on the material reciepts and the payments made against the inventory received.

For eg, the material will be recieved by your store people and they will verify everything and process the MIGO that is GRN (Goods Reciept Note), which can be seen in the Purchase order that we have recieved the material agains the purchase order and the quantity and other details.

Second the bill has to presented for payment to finance department they will process the MIRO and they dont know whether the material has been recieved or not only source is the GRN made against the purchase order, while processing the MIRO u can verify and process the bill, with out checking the material reciept also u can process.

The control wat you have here is the GR/IR clearing account, it the account is not cleared or having open items means either the material recieved and payment not been processed or payment processed but material not arrived to the factory.

So we can easily trace out the mistakes happend.

Thanks and regards

Sorry little bit elobrated explanation i think.

[Former Member]

Hi,

Thanks so much for the valuable and detailed explanation.

From your explanation I came to the conclusion , that the Gr/IR account not cleared means either we have not received goods or inovice not received.

My question is why do we have open items on GR/IR??

what do u mean by having open items on the GR/IR ?

also clearing of GR/IR means that we have received the goods and we want to clear the GR / IR account. I think i am right here.

Please explain..why the open items are there on GR/IR.As per my interpretation it should be either cleared or ??

thanks

srikanth..

[praveen_jagadeesan]

Dear Srikanth,

Open items is nothing but the Line items u haven cleared, as u understand either the receipt of material or invoice process is pending, thats it.

It is basically a controlling porpose.

GR/IR account is nothing but Good Reciept and Invoice Reciept account.

Thanks and regards

[Former Member]

Thanks so much...I have one more question for you..

I have read this...

GR/IR Clears the following Documents

GL Document

Customer Documents

Vendor Documents .

GR/IR is a clearing account but how does it clear the above documents.

thanks in advance..

srikanth

[praveen_jagadeesan]

Dear Srikanth,

Automatic clearing process will have options to clear the following accounts

GL accounts

Vendor accounts and

Customer accounts

Each accounts has it own clearing procedure, and criterias.

check f.13 and ob74

Thanks and Regards