You notice that the GR/IR account does not have a zero balance. What could be the cause? Note: There are 2 correct answers to this question.

Question

Options

• AA purchase order has a goods receipt and an invoice receipt with the same quantity but with
• BA purchase order has a goods receipt and an invoice receipt with the same quantity and values.
• CA purchase order has a partial invoice receipt but not yet a goods receipt.
• DA purchase order has a partial goods receipt for which we have not yet received an invoice.

• A
  6% (3)
• B
  17% (9)
• C
  77% (40)

Explanation

Options C and D are correct because the GR/IR account acts as a clearing account that only nets to zero when a matching goods receipt (GR) and invoice receipt (IR) exist for the same quantity and value. In option C, an invoice has been posted without a corresponding goods receipt, leaving an open debit entry; in option D, a goods receipt exists without a matching invoice, leaving an open credit entry - in both cases, the account cannot clear to zero.

Option B is a distractor because matching GR and IR quantities and values is exactly the condition that clears the account to zero. Option A (likely describing same quantity but different values) would trigger a price variance posting but the GR/IR quantity match would still allow the clearing account to net out, so it's not a cause of imbalance.

Memory tip: Think of the GR/IR account as a matchmaking service - it only "closes a case" when both the goods receipt and invoice receipt arrive and agree. Any unmatched or partially matched document leaves the account "open," just like an unsettled IOU.

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