Which situations can lead to an open item on the GR/IR clearing account?

An open item on the Goods Receipt/Invoice Receipt (GR/IR) clearing account arises when there is a mismatch between the quantities of goods received and the quantities invoiced. In this scenario, when the delivered quantity for a purchase order item is less than the invoiced quantity, it creates an outstanding balance in the GR/IR clearing account.

This mismatch indicates that the company has received fewer goods than what it has been billed for, which means that there is still a payable amount awaiting resolution for the quantity of goods that were not received. Therefore, the system shows an open item until the remaining goods are received or the invoice is adjusted accordingly. Open items in the GR/IR account require attention and reconciliation to ensure that the financial records accurately reflect the company's liabilities and assets.

In contrast, when the invoiced quantity is less than the delivered quantity, it typically does not create an open item, as the company has received more goods than it has been billed for, indicating potential issues with the invoice that need to be addressed from the supplier's side. Matching quantities do not lead to open items, as both the invoicing and receipt align, and additional shipping costs, while they may affect the total invoice amount, do not contribute to a discrepancy between