All 23 Reconciliations questions
More in Reconciliations
Why are regular reconciliations important for fraud prevention? What is the frequency at which key reconciliations should be performed? What are reconciling items and how are they classified? How do you reconcile a supplier statement to the AP ledger? How do you reconcile intercompany AP/AR balances? How does automation (reconciliation software) improve the process? How do you reconcile accounts receivable to revenue? What is a three-way reconciliation (e.g., for trust/client accounts)? What makes a reconciliation 'review-ready' for audit? How do you reconcile petty cash and expense floats?
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Accounts Payable & Receivable › Reconciliations

What is the GR/IR reconciliation and why does it matter?

Intermediate

Answer

The GR/IR (goods-received/invoice-received) reconciliation analyzes the clearing account that holds the gap between receiving goods and receiving invoices. Open balances mean goods received but not invoiced (accrue) or invoiced but not received (investigate). Clearing it keeps liabilities accurate and prevents old, unexplained balances from accumulating.
Real-world example The quarterly GR/IR reconciliation accrues genuine received-not-invoiced liabilities and clears mismatches from quantity errors.

Common follow-ups: What does an open GR/IR balance represent? | How does GR/IR feed accruals?

Purchase Orders & 3-Way Matching Invoice Processing Reconciliations
All 23 Reconciliations questions