Clearing GR/IR with Price Variance

[niranjan_yerraguntla]

Hi Friends,

1) We created a PO with Qty 1 and price $ 67.50.

2) First, GR was made and system calculated $ 67.50 as Moving Average Price.

3) Then Invoice was entered for $ 73.17.

4) For some reasons, GR was reversed. This time system calculated $ 73.17 as value, instead of 67.50.

5) Invoice is now reversed for $ 73.17

6) GR is again made 2nd time with value $ 67.50

7) Invoice is now entered again 2nd time with value $ 73.17

The Net GR value is now $ 61.83( 67.50 - 73.17 + 67.50) AND Net Invoice value is 73.17

When Invoice was posted, it cleared GR/IR for Net GR value of 61.83 and it posted another 11.34 for 'Office supplies GL account.

When we run MR11 to clear GR/IR, it does not clear the above 5.67 dollars ( It should have been 73.17 - 67.50 to get 5.67 dollars ).

My question is, Has system calculated correctly during last Invoice posting and there is no GR/IR balance ?

When we run FBL3N report for GR/IR clearing account, we see a balance of 5.67 and normally we would see 0 here.

Any help is appreciated.

Niranjan

[Former Member · Accepted solution]

Hi,

When you canceled the first IR it should reverse the GR value of 67.50 and office supplies of 5.67.

When you do the second GR it should take the GR value $67.50.and $5.67 as the price diff account or office supplies account.Plz check the Office supplies G/L account.

[raghavendra_praveen]

1) We created a PO with Qty 1 and price $ 67.50.

2) First, GR was made and system calculated $ 67.50 as Moving Average Price.

3) Then Invoice was entered for $ 73.17.

4) For some reasons, GR was reversed. This time system calculated $ 73.17 as value, instead of 67.50.

*If you reverse the GR despite of Invoice is posted, it will pick the value of invoice but not the PO value.

In this case GR/IR will be debited 73.17 and stock/expense account will be credit with 73.17 (because in invoice stock/expense debited was 73.17)

So net debit on GR/IR will be 5.67 dollars

5) Invoice is now reversed for $ 73.17

6) GR is again made 2nd time with value $ 67.50

7) Invoice is now entered again 2nd time with value $ 73.17

In this case GR/IR debit will be 67.5 and stock/expense accoutn debit will be 73.17 (67.5 + 5.67directly)

So total debit on GR/IR will be 5.67dollars that you will see on GR/IR clearing GL account balance.

Thanks

[Former Member]

How can u cancel GR without cancelling IR. Funny

[niranjan_yerraguntla]

Hi Kari Srinivasa Rao,

I checked the first IR reversal, and there is no 'Office Supplies' Account. Just Vendor line item AND GR/IR Clearing line item.

When First Invoice was posted, it was posted with 5.67 for Inventory Account.

It looks like that when PO was initially created, it was created with 'Account Assignment Category' blank. Then later changed to 'K' - Cost center and user entered 'Office Supplies' GL Account. Do you think this would have screwed up the Accounting entries ?

Niranjan

[Rajen_Patel]

Yes, that might.

As far as I know non-stock (acct asmt = K)PO GR/Invoice post variance goes back to Cost center, not inventory clearing account.

Hope this helps-