What is done with GR/IR regrouping in SAP?
GR/IR regrouping is a Periodic closing process and is exercised to
1. Analyze and ascertain net out balances for the assets and liabilities accounts.
2. Carryout necessary adjustment postings
Since in both the situations debit and credit entries are posted to GR/IR account as applies, the GR/IR account would have the net out value of the above transactions. However, the GR/IR regrouping program analyses all the above open items and regroups them to the correct adjustment accounts.
Balances on account of BNG transactions are regrouped to an asset account and similaly, balance on account of GNB transactions, it is regrouped to a liability account.