Which situations lead to an open item on the GR/IR clearing account? Note: There are 2 correct answers to this question.

Question

Options

• AThe delivered quantity for a purchase order item is more than the invoiced quantity.
• BThe ordered quantity for a purchase order item is more than the delivered quantity.
• CThe invoiced quantity for a purchase order item is more than the delivered quantity.
• DThe ordered quantity for a purchase order item is more than the invoiced quantity.

• A
  74% (23)
• B
  10% (3)
• D
  16% (5)

Explanation

A and C are correct because the GR/IR clearing account only accumulates open items when there's an imbalance between actual goods receipts (GR) and actual invoice receipts (IR). In A, goods were received but not yet fully invoiced, leaving an unmatched GR posting on the account. In C, an invoice was posted for more than what was actually delivered, leaving an unmatched IR posting.

B and D are wrong because they both reference the ordered quantity - but purchase order quantities never generate GR/IR postings. The GR/IR account is only touched when physical goods arrive (GR) or an invoice is booked (IR). An order sitting open creates no accounting entry on the GR/IR account whatsoever.

Memory tip: Strip out any answer choice that mentions "ordered quantity" - orders don't post to GR/IR. The only two postings that matter are GR (goods in the warehouse) vs. IR (invoice in the system). If those two are out of balance, you have an open item.

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