Clear open GR/IR

[Former Member]

Hi,

We have done GR for an Asset PO and thereafter the asset got depriciated.

Later, no invoice received from vendor for this PO and hence decided to close the open GR/IR account.

We tried doing MR11, but as asset already got capitalised and depriciated, its not allowing us to post account maintainence entry - Givinbg error "Dep area 10 conflicts with net book value rule"

We cannot even reverse GR as the Asset is being used.

probable solution could be to remove direct posting flag for GR/IR clearing account and then to make a maual entry by debiting GR/IR account and crediting "gain from vendor a/c" and later to maually clear the open items.

Please advise.

Thanks,

Pavan.

[Former Member]

This is a free Asset to the organisation. In this case, GR/IR clearing account has to be cleared with Miscel. Gain a/c. So, we removed the auto flag and posted a manual entry and we have noted this transaction as a special case for audit purposes.

[Former Member]

Hi

As per your explanation, you have capitalized one Asset and depreciate that but you havn't done MIRO since no invoice received, and amount is lying in GRIR account only.

Now if you want to reverse GR document that means you are taking off whole Asset purchase and don't want that Asset value in your asset accounting.And you will return that Asset to vendor,if you have received physically ! or you will nullify the assetvalue if didn't received physically.

In this case I would suggest you to recheck your requirement and if you need to return /nullify your Asset then have to either retire or sale your Asset to nullify the Asset value in Asset accounting.It will pass adjustment entries of loss or gain accordingly.

Then transfer manually GRIR amount to your Required GL account.Then clear the two docs in GRIR account .

Cheers

Mukta

[Former Member]

Hi,

We dont want to touch Asset side, as asset side every thing is fine.

We just need to close the open GR/IR that is lying in GR/IR account at the time of GR.

Further, to post manually, GR/IR is a control account and "Post automatically" is active.

Is it a good idea to remove this flag and post a manually entry, from audit perspective ?

[Lukey]

Hi There,

I do not think that it is a good idea to remove the post automatically only indicator from GR/IR as then people can manually post to this GL account. From an audit perspective it is not adviseable.

post automatically only

Indicates that this account can only be posted to by the system using account determination tables.

[Lukey]

Hi There,

I do not think that it is a good idea to remove the post automatically only indicator from GR/IR as then people can manually post to this GL account. From an audit perspective it is not adviseable.

post automatically only

Indicates that this account can only be posted to by the system using account determination tables.

[Former Member]

I am curious as to how the asset was paid for? Was the asset paid for?

[Former Member]

Are you saying that a company sent a free asset that will never be paid for or it was paid by another means outside of the PO process? Normally we would contact the vendor and ask to be invoiced.

MR11 will make the system adjust the goods receipt activity. My experience is telling me that that adjustment is trying to go against the asset (i.e. cause a credit memo to post against the asset).

I have a suggstion and you can prove this in a test environment. If your Asset Accounting settings for your depreciation area in OADB does not allow for negative values (credit memos), then this may be why you are unable to use MR11 or reverse the GR and get the message about Dep area 10 conflicts with net book value rule. Change the OADB settings for your depreciation area so that "all values are allowed" for acquisition and net book value. You can change the setting back afterwards.

This change should allow the reversal of the goods receipt or the use of MR11 which will in turn adjust the asset value when you perform your asset processes.

[Former Member]

Thanks for your reply,

MR11 / reversing GR will reduce the asset value. But, Asset is being used.

Please advise,

Pavan.