Why would you need to perform a GR/IR?

Performing a Goods Receipt/Invoice Receipt (GR/IR) is essential in managing the accurate recording of inventory and associated financial liabilities. The need to perform a GR/IR arises when there is a mismatch between the receipt of goods and the posting of the related invoice.

When an invoice is posted but the corresponding goods receipt is missing, it indicates that the financial record shows a liability (the invoice) without the corresponding asset (the goods). This discrepancy needs to be addressed to ensure that the financial statements accurately reflect the company’s situation. By performing a GR/IR, the system can properly document the receipt of goods once it occurs, allowing for the appropriate matching of expenses to revenues and maintaining the accuracy of accounts payable.

In contrast, when a goods receipt is posted but no invoice is received, there is still a mismatch but from the opposite perspective. It may require different handling, such as follow-up with the supplier. When both the invoice and goods receipt are matched, there is no need for additional GR/IR processing, as the records are already correctly aligned. If no transactions need to be processed, there’s no relevance for GR/IR handling at all. Therefore, the situation where an invoice is posted without a corresponding goods receipt is where performing