The following example shows the postings made when you post a credit memo after several goods receipts and invoice receipts for a material with moving average price control.

The stock account is posted with the receipt value based on the purchase order price.

The offsetting entry is posted to the GR/IR clearing account.

The GR/IR clearing account is cleared on the basis of the purchase order price:

The posting for the offsetting entry is based on the invoice price on the vendor account:

The invoice is different to the purchase order price. The difference between the purchase order value and the invoice value is posted to the stock account if there is sufficient stock coverage.

When you receive the second invoice, the GR/IR clearing account for the part of the invoice that has already been delivered and the part of the invoice that has not yet been delivered is cleared as follows:

The posting for the offsetting entry is based on the invoice price on the vendor account.

The invoice is different to the purchase order price. The difference between the purchase order value and the invoice value is posted to the stock account if there is sufficient stock coverage.

Another goods receipt is entered. The goods receipt quantity is smaller than the invoice quantity, so the system makes the posting to the stock account based on the last invoice price.

The offsetting entry is posted to the GR/IR clearing account.

When you post the credit memo, if the invoice quantity is greater than the goods receipt quantity, the credit memo quantity is divided into the quantity that is covered by the excess invoice quantity and the remaining credit memo quantity. The following values are invoiced:

The total of the excess invoice quantity and the remaining credit memo quantity is posted to the GR/IR clearing account.

The credit memo amount is posted to the vendor account.

The credit memo amount is different to the posting to the GR/IR clearing account. The system posts the difference to the stock account if there is sufficient stock coverage.

Therefore, once the credit memo has been posted to the GR/IR clearing account, a balance of $565.00 remains. This means that the system still expects an invoice for a goods receipt of 50 pieces, when the invoice is posted, the balance is cleared.