SR/IR balance as on last date of Fiscal year

[MSAP]

One of my client’s auditor raised objection on SR/IR balance as on last date of fiscal year.

Entire scenario is below:

1.Entry at the time of goods receipt:

Inventory a/c Dr. 1,000

GR/IR a/c Cr. 1,000

Since invoice is not received/forgot to enter till end of fiscal year, this entry will remain open as once we will enter invoice in next year (MM period is closed for previous Fiscal year) it will get clear. But now auditor has asked to make it zero as on last date of previous fiscal year. Could anybody suggest the best way to handle this scenario without passing any JV.

[ankurch]

Hi Mukesh,

Better to ask from your FI business team, whether at later stage they already cleared those open accounts then you will make double entries!

If Finance team already cleared then those documents you can find out as cleared items in report!

Thanks,

[MSAP]

Hi Ankur,

Thanks for your quick reply.

Since there is only entry of goods receipt on last day of fiscal year, FI team haven't received the invoice. IR is still pending. So my doubt is only that what user should do if only GR is done & auditor want to make the GR balance zero. Anyway once user will get invoice through F.13 system will automatically clear GR/IR account.

[ankurch]

Mukesh, you can also use MR11 to clear GR/IR account if invoice is not received,. it will clear your GR/IR account!

Thanks,