Procurement Glossary
GR/IR Clearing: Definition, process steps and significance in Procurement
November 19, 2025
GR/IR clearing refers to the systematic reconciliation between goods received (Goods Receipt) and invoice received (Invoice Receipt) in the procurement process. This process ensures the correct allocation and clearing of deliveries with the corresponding invoices. Find out below what GR/IR Clearing involves, which process steps are required and how you can minimize risks.
Key Facts
- Automated reconciliation between goods receipt and invoicing to avoid booking errors
- Central component in the purchase-to-pay process for transparent cost recording
- Reduces manual checking efforts through systematic allocation of documents
- Enables prompt identification of discrepancies between order, delivery and invoice
- Supports compliance requirements through complete documentation of all transactions
Contents
What is GR/IR clearing? Definition and procedure in the process
GR/IR Clearing is an essential control mechanism in procurement that ensures the proper clearing of incoming goods and invoices.
Basic functionality of GR/IR clearing
The system automatically compares incoming invoices with the corresponding goods receipt postings. The following criteria are checked:
- Order numbers and items match
- Quantity comparison between delivered and invoiced goods
- Price comparison between order and invoice
- Scheduling of business transactions
GR/IR clearing vs. three-way match
While the three-way match process matches purchase orders, goods receipts and invoices simultaneously, GR/IR Clearing focuses specifically on clearing goods receipts that have already been posted with incoming invoices.
Importance of GR/IR clearing in Procurement
For purchasing organizations, GR/IR Clearing enables precise cost control and supports factual invoice verification. The process helps to optimize the purchase-to-pay cycle and reduces the risk of double payments or unfounded invoices.
Process steps and responsibilities
The successful implementation of GR/IR Clearing requires clearly defined process steps and unambiguous responsibilities between Procurement, Goods Receiving and Accounts Payable.
Automatic assignment and matching process
The system carries out an automatic account allocation by linking invoice items with corresponding goods receipt postings. If the assignment is successful, payment is automatically released.
- Electronic data synchronization between ERP modules
- Tolerance check for quantity and price deviations
- Automatic booking when there is a complete match
Manual processing of exceptions
Items that cannot be assigned are forwarded for manual checking in an invoice release workflow. Defined release limits are applied here.
Integration into ERP systems
ERP integration ensures seamless data transfer between Procurement, warehouse management and financial accounting. Modern systems also support the processing of EDI messages for fully automated processing.
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Important KPIs and targets for GR/IR clearing
Clearing efficiency is measured using specific key figures that evaluate both operational performance and financial impact.
Degree of automation and throughput times
The proportion of automatically processed clearing processes shows the system efficiency. Target values are typically over 80% automatic processing with average processing times of less than 24 hours.
- Straight-through processing rate (STP rate)
- Average clearing time per transaction
- Number of manual interventions per period
Error rates and exception handling
The error rate on the first clearing attempt and the time for exception handling are critical quality indicators. Modern systems achieve error rates of less than 5% during initial processing.
Financial impact and cost savings
Significant cost savings can be realized through efficient GR/IR clearing. Spend analysis reveals optimization potential, while shortened payment cycles can maximize cash discount income. Typical savings are 15-25% of process costs compared to manual processing.
Risks, dependencies and countermeasures
GR/IR clearing involves various operational and systemic risks that can be minimized through suitable control mechanisms and process design.
System failures and data inconsistencies
Technical faults can lead to interruptions in the clearing process and cause payment delays. Redundant system architectures and regular data reconciliation are essential.
- Backup systems for critical clearing functions
- Monitoring data quality and system performance
- Emergency procedures for manual processing
Compliance risks and audit requirements
Incomplete or incorrect clearing processes can lead to compliance violations. The dual control principle and documented workflow rules ensure traceability.
Supplier dependencies and data quality
Poor data quality on the supplier side makes automatic clearing considerably more difficult. Standardized vendor master data and clear purchasing conditions reduce these risks. Structured vendor onboarding ensures that suppliers comply with the required data standards.
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Practical example
A medium-sized production company implements automated GR/IR clearing for its 500 active suppliers. The system matches around 200 invoices with corresponding goods receipts every day. In the case of an invoice for raw materials worth 15,000 euros, the system automatically recognizes the match with the goods receipt posted three days previously. After a successful tolerance check, the invoice is automatically released for payment.
- Reduction of manual processing time from 45 to 5 minutes per invoice
- Increase in cash discount utilization by 12% through accelerated processing
- Reduction of duplicate payments by 95% through systematic reconciliation
Trends & developments in GR/IR clearing
The digitalization of procurement is driving innovative developments in GR/IR clearing, with artificial intelligence and machine learning opening up new possibilities.
AI-supported exception handling
Artificial intelligence is revolutionizing the processing of clearing exceptions through intelligent pattern recognition and automated solution proposals. Machine learning algorithms learn from historical data and can identify recurring deviation patterns.
- Predictive analytics for supplier behavior
- Automatic categorization of exceptions
- Intelligent suggestions for manual assignments
Real-time processing and cloud integration
Modern e-procurement platforms enable real-time clearing through cloud-based architectures. This significantly reduces throughput times and improves liquidity planning.
Blockchain-based transparency
Blockchain technology creates immutable audit trails for GR/IR transactions and increases transparency in the procure-to-pay process. Smart contracts can enable automatic payment triggers in the event of successful clearing.
Conclusion
GR/IR clearing is an indispensable component of modern procurement processes and makes a significant contribution to automation and quality assurance. The continuous further development of AI technologies opens up new potential for increasing efficiency. Companies should invest in robust systems and standardized processes in order to fully realize the benefits. Careful implementation with clear KPIs ensures sustainable success.
FAQ
What happens in the event of deviations in GR/IR clearing?
In the event of quantity or price deviations outside defined tolerances, the process is forwarded for manual checking. The clerks check the causes and decide on further processing. Frequent causes are partial deliveries, price changes or incorrect invoicing.
How long does a typical GR/IR clearing process take?
Automatic clearing processes are usually completed within a few minutes. Manual post-processing can take 1-3 working days, depending on the complexity. Modern systems achieve throughput times of less than 24 hours for 90% of all processes.
What are the requirements for successful GR/IR clearing?
Standardized master data, unique order numbers and consistent article coding are crucial. Tolerance limits must also be defined and workflow rules established. The integration between ERP modules must function smoothly and employees must be trained accordingly.
Can GR/IR clearing also be used for services?
Yes, in the case of services, clearing is carried out via proof of performance instead of goods receipts. Services rendered are documented and compared with incoming invoices. This is particularly efficient for recurring services or framework agreements.
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