Usually, the reason as to why the Inventory Received not Billed is showing Debit on the Balance Sheet is because there are more item quantities billed than received making the Bill higher in dollar amount than the Item Receipts. Also, there are Purchase Orders Billed but not yet Received.
Users can run below saved search to identify which Purchase Order transactions are affected:
1. Navigate to Reports > Saved Searches > All Saved Searches > New.
2. Click on Transaction link.
3. On the Saved Transaction Search page, under Criteria tab > Standard sub-tab, set Filter to:
a. Type = Purchase Order
b. Main Line, set to No
c. Formula (Numeric)
Formula = {quantitybilled}-{quantityshiprecv}
Formula (Numeric) drop down = greater than
Value = 0
4.Under Results tab, set fields to:
a. Date
b. Document Number
c. Status
d. Fulfilling/Receiving Transaction fields... > Amount
e. Fulfilling/Receiving Transaction fields... > Document Number
f. Quantity Fulfilled/Received
g. Billing Transaction Fields... > Amount
h. Billing Transaction Fields... > Document Number
i. Quantity Billed
j. Formula (Numeric) > set Formula field = {quantitybilled}-{quantityshiprecv}
Note: The formula shows some purchase orders in duplicate. Perhaps it is because of the Quantity Fulfilled/Received and Quantity Billed showing in different rows. Nevertheless, the search will show you which purchase orders had more item quantities billed than received.
*Debit Balance on the Inventory Received Not Billed account means there are more bills than item receipts.