The balance in a GR/IR account is basically because of 2 main types of TRANSACTIONS:-

Goods DELIVERED but invoice not received: Here the Goods RECEIPT is made but no invoice has yet been received from the vendor. In such a scenario GR/IR account will have a credit balance.

Invoiced received but goods not delivered : Here the Invoice is received from the vendor and accounted for, but goods have not been received. In such a scenario GR/IR account will have a debit balance. The GR/IR account would contain the net VALUE of the above TWO types of transactions. The GR/IR regrouping program analyses the above transactions and regroups them to the correct adjustment account. The balance on account of first transactions will be regrouped to another liability account and the balance on account of second transactions will be regrouped to an asset account.

The balance in a GR/IR account is basically because of 2 main types of transactions:-

Goods delivered but invoice not received: Here the Goods receipt is made but no invoice has yet been received from the vendor. In such a scenario GR/IR account will have a credit balance.

Invoiced received but goods not delivered : Here the Invoice is received from the vendor and accounted for, but goods have not been received. In such a scenario GR/IR account will have a debit balance. The GR/IR account would contain the net value of the above two types of transactions. The GR/IR regrouping program analyses the above transactions and regroups them to the correct adjustment account. The balance on account of first transactions will be regrouped to another liability account and the balance on account of second transactions will be regrouped to an asset account.