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Problem

The inventory reconciliation report is out of balance i.e. the ledger balance does not agree to the stock on hand value.

Solution

There are a few reasons why the inventory may not balance.  It could be

  • transactions that have impacted the inventory control account but not updated stock records (e.g. creditor purchases); and/or 
  • non-physical inventory items posting to the inventory control account.  This will cease to be an issue in versions 7.00.175 and higher where the posting of non-physical items has changed (uses the Cost Of Goods Movement account to post purchases of these items)
  • physical inventory items linking the inventory value / delivered asset accounts to a P&L expense account

A starting point is running off the General Ledger Listing with Source report for the inventory control account grouped by Source and see if there is something in there that provides the answer.

  1. Inventory > Configuration and check linking to the Inventory Value and Delivered Asset accounts (all Balance Sheet > Current Asset accounts)
  2. Inventory > Maintenance > Search window and select the filter Non-Physical (IN_Main.PhysicalItem = 0). Inventory Value and Cost of Sales should be expense accounts
  3. General Ledger Listing with Source report - select relevant period and ledger segments for the Inventory Value account(s) and Delivered Asset account (where different from the Inventory Value account)