Account Maintenance with Quantity Variances: Account Movements
The offsetting entry to clear the GR/IR account is the same as the posting made when you enter an invoice for a purchase order.
The GR/IR account is cleared against the stock account if no stock coverage exists. If the material stock is smaller than the quantity to be cleared, the actual existing stock is debited/credited proportionally. The rest is posted to an expense or income account.
The offsetting entry is made to an expense or income account.
The offsetting entry is made to the cost or fixed asset account to which the invoice was posted.