2621145 - GR/IR Clearing Run Posts Price Difference to Difference Account Instead of Adjusting a Material's Inventory Cost

The GR/IR Clearing run posts purchase price differences to a purchase price difference G/L account for a material, valuated with the Moving average perpetual cost method instead of adjusting its inventory cost.

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1. Go to the Inventory Valuation work center.
2. Select GR/IR Clearing view.
3. Select the Run ID: XX-XX-XXX (this represents GR/IR Clearing Run ID).
4. Navigate to the Processed Successfully tab and select the Purchasing Document Item ID: AAA (AAA represents purchasing document ID).

Notice that some amounts are posted under Purchase Price Difference.

The GR/IR clearing process is expected to be executed after receiving goods from the supplier. If a goods receipt is immediately followed by a series of goods issues to the customer, the inventory quantity decreases. If the quantity reaches zero before the GR/IR run, and there are price differences, the system posts these differences to the Purchase Price Differences account instead of capitalizing them to the inventory account. 

To check the inventory quantity:

1. Navigate to the Materials view in the Inventory Valuation work center.

2. Select the relevant material and click View Cost History.

3. Review the Capitalized Quantity for the selected period.

The GR/IR run does not capitalize quantity, it only capitalizes amounts. However, it is not logical to capitalize an amount when the material has no quantity remaining in inventory. The correct process is to execute the GR/IR Clearing Run before posting the goods issue to the customer and before the inventory quantity reaches zero. This ensures that the system capitalizes the inventory value (when using the Moving Average method) and correctly adjusts the inventory cost.

KBA 2373070 - GR/IR Clearing Run: Purchase Price Difference Amount Is Not Fully Posted to Stock (Warehouse Inventory) G/L Account

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