Understanding the GR-Non Valuated Indicator in SAP Purchasing

What Is the GR-Non Valuated Indicator in SAP?

In SAP Purchasing, the GR-Non Valuated Indicator plays a key role in how financial postings are managed during the procurement process. When this indicator is selected in a Purchase Order (PO), no financial accounting entry is created at the time of Goods Receipt (GR). Instead, the only financial posting takes place during the Invoice Receipt (IR) stage.

Why Use the GR-Non Valuated Option?

The GR-Non Valuated setting is especially relevant when purchasing fixed assets. In many countries, accounting regulations require that an acquisition should not be recorded until a valid, legally binding document—typically the supplier’s invoice—is received. This ensures compliance with legal standards and helps avoid premature or inaccurate financial postings.

Key Reasons for Using GR-Non Valuated Indicator:

  • Legal compliance: Ensures asset capitalization only upon receipt of the supplier invoice.
  • Avoid estimation errors: Prevents posting estimated values based on GR followed by corrective postings after IR.
  • Clean accounting process: Helps maintain a clearer separation between inventory management and financial accounting.

When Should You Use GR-Non Valuated Goods Receipts?

The decision to use non-valuated goods receipts should align with your organization’s financial policies and regulatory requirements. While it's commonly used for assets, other procurement categories may or may not benefit from this setting depending on how your company handles accounting and reporting.

Considerations Before Using:

  • Does your company require legal proof (invoice) before capitalizing assets?
  • Do you prefer minimizing interim adjustments in your books?
  • What are your internal audit and compliance practices?

Conclusion

The GR-Non Valuated Indicator in SAP is a strategic tool to streamline financial postings in alignment with accounting standards and business needs. Especially useful in asset procurement, it ensures financial postings are made only when all legal documentation is in place. However, its use should be evaluated carefully against your company's financial controls and compliance obligations.

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