The account gets cleared after the Invoice (IV) is done.
After GRN is raised:
Dr. Expenditure A/c
Cr. GR/IR A/c
After IV is done:
Dr. GR/IR
Cr. Vendor A/c
After payment
Dr. Vendor A/c
Cr. Bank
If GR IR is high it shows that the Company has a high liability.
It also states that the IV is not done in time.
It can be reduced by doing the IV in time.
3 comments:
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Thanks & Regards
RAJKUMAR SHARMA
That is a good tip, especially to those new to the blogs here but very accurate information.
Very nice blog post!! Thanks for the post, that is a really neatly written blog.
Oracle Fusion HCM Technical Training
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