Reconcile Inventory Valuation Report and Balance Sheet Inventory Account

Inventory Valuation Report total value may not match the Inventory Balance in the Balance Sheet due to the following reasons. Inventory Valuation Report is based on transactions affecting the item and its value. Inventory amount in the balance sheet is driven by GL account balance. Transactions that are not linked to an item such as Journal Entries, Bills, Checks and Deposits directly using the Inventory account may cause the discrepancy. The said transactions are reflected in the Balance Sheet as it hits the General Ledger but it is not reflected in the Inventory Valuation Report. 

 

1. Navigate to Reports > Financial > Balance Sheet.

2. Click Inventory Account Name 

3. View General Ledger Detail Report of the Inventory Account

4. Click Customize button

5. Click Filters tab:

   1. Add Fields section: Click Transactions folder

   2. Click Item

      1. Filter: Select empty

      2. Click Done

   3. Add Fields section: Click Transactions folder

   4. Click Account (Line) 

      1. Filter: Select equal to

      2. Click Select Multiple (double downward arrows sign)

      3. Click Asset Accounts used in Item records

      4. Click Done

6. Click Save