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- Category: SAP Controlling
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By Ross Christoph
Goods Receipt/Invoice Receipt (GR/IR) clearing is an important part of the procure-to-pay process in SAP Materials Management (MM) and Financial Accounting (FI). The GR/IR clearing account is an interim G/L account that records the offsetting entries for valuated goods receipts and related supplier invoices. Either document may be posted first. Matching postings normally offset at purchase order item level; eligible FI open items are subsequently cleared through automatic clearing.
The purchasing process typically involves three documents:
- Purchase Order (PO): Specifies the materials or services ordered, quantities, and agreed prices.
- Goods Receipt (GR): Records the receipt of materials or services against the purchase order.
- Invoice Receipt (IR): Records the supplier invoice and verifies it against the purchase order and goods receipt.
In a standard valuated purchase order process, the goods receipt credits GR/IR and the invoice receipt debits it. Non-valuated receipts and other procurement scenarios can follow different posting logic.
Outstanding balances may indicate missing invoices, incomplete deliveries, or quantity differences requiring investigation.
In SAP S/4HANA, GR/IR reconciliation helps organizations identify outstanding differences and maintain accurate inventory, purchasing, and financial accounting records.
Read more: SAP GR/IR Clearing: Goods Receipt and Invoice Receipt
- Category: SAP Controlling
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Activity type tutorials by Tom King
SAP activity types classify work performed by cost centers, such as machine hours or maintenance hours. The activity type category controls how quantities are recorded and allocated, while the activity price values the allocation.
This guide brings together Tom King's seven-part activity posting series. Compare the classic categories, choose a starting point, and follow the worked examples for direct, indirect, and target=actual activity allocation.
Read more: SAP Activity Type Categories: Guide to the Posting Series
- Category: SAP Controlling
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By Tom King
SAP activity type category 5 supports target=actual activity allocation. In the classic process, SAP calculates actual activity quantities from planned receiver activity inputs and operating rates, then posts the allocation with transaction KNMA.
This final tutorial in the activity posting series compares fixed and variable planned allocations. Both examples use activity type CATEG5 to allocate support activity from a sender cost center to manufacturing cost centers.
Read more: SAP Category 5 Activity Types: Target=Actual Allocation
- Category: SAP Controlling
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By Tom King
SAP activity type category 4 records activity quantities on a cost center without allocating them to receiver objects. The quantity supports operating-rate and target-cost analysis while the costs remain on the cost center.
This tutorial shows how to plan activity type CATEG4 for cost center SND4, record 500 units with KB51N, and review the resulting variable target costs without an allocation posting.
Read more: SAP Category 4 Activity Types: KB51N Without Allocation
- Category: SAP Controlling
- Hits: 16701
By Tom King
SAP activity type category 3 combines manual quantity entry with indirect activity allocation. You record the sender's actual activity with KB51N, then run KSC5 to distribute that quantity using the cycle's sender/receiver relationships and tracing factors.
This worked example allocates 8,500 units of CATEG3 from cost center SND3 to three receiver cost centers. It shows how weighted receiver machine hours determine each receiver's share while the total sender quantity remains the amount manually posted.
Read more: SAP Category 3 Activity Types: Manual Entry, Indirect Allocation
- Category: SAP Controlling
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By Tom King
SAP category 2 activity types can calculate sender quantities from activity already posted in receiver cost centers. In this example, machine hours drive the quantity of support activity allocated from cost center SND2, using indirect activity allocation rather than a separate manual sender posting.
Learn how to plan the relationship, configure receiver tracing factors and weighting factors, execute the cycle with KSC5, and revalue the allocation at an actual activity rate.
Read more: SAP Category 2 Activity Allocation Using Receiver Activity
- Category: SAP Controlling
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By Tom King
Category 2 activity types are for indirect determination and indirect allocation.
Read more: SAP Activity Postings 2: Category 2 Activity Types
- Category: SAP Controlling
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By Tom King
Let's start with activity type category 1 (manual entry, manual allocation) which is the most common. Activity types defined with this category post directly from a cost center to a receiver cost object.
Look at the definition of activity type CATEG1 as shown at the top in Figure 1. In this case, Actl Acty Type Cat. (Actual Activity Type Category) is blank, which means it is the same as the plan activity type category, or 1 in this example.
2026 editorial note: This tutorial preserves Tom King’s original 2017 example and classic SAP GUI screenshots. Transaction and reporting availability depends on your SAP edition, release, and configuration. For SAP S/4HANA Cloud Public Edition, use the supported apps and processes for your activated scope.
Read more: SAP Category 1 Activity Allocation: KB21N Example
- Category: SAP Controlling
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By Paul Ovigele
SAP Material Ledger helps you understand inventory values and material cost differences. Its optional Actual Costing functionality calculates period-end material costs while retaining standard cost as a benchmark during the period.
This introduction explains how standard price, moving average price, and Actual Costing fit together. For SAP S/4HANA: Material Ledger is mandatory for inventory valuation; Actual Costing remains optional. ERPCorp has updated Paul’s original introduction to clarify these distinctions.
Read more: SAP Material Ledger Basics: Standard vs. Actual Costs