Inventory Valuation report does not match inventory balance on General Ledger ?
The Inventory Valuation Report, General Ledger (GL), and Balance Sheet should agree. Below are the most common reasons for discrepancies between the reports and their corresponding accounts.
Note: When comparing reports, use only standard or predefined reports. The reports should be for the same date range.
- If any of the filters are selected (Active/Inactive, Item Class, Item type, etc…) on the Inventory Valuation Report then the reports will not match. In the Inventory Valuation Report select Options, click Clear All Filters and then click OK to run the report again.
- If the beginning balance amount for the GL Inventory Account did not match the beginning balance amount for your physical inventory, or the Beginning Balance at the start of your fiscal year did not match your ending balance of the previous year, the reports will not match.
- If any entries were posted to the Inventory Account that did not originate in the Sales Journal (SJ), Purchase Journal (PJ), Cash Receipts (CRJ), Disbursements Journal (CDJ), or Inventory Adjustment Journal (INAJ), then the reports and the account(s) will not match. For example, General Journal entries will not affect the Inventory Valuation report but will affect the totals on the Balance Sheet and General Ledger.
- If any SYSCOST Adjustments were posted to the General Ledger, then the Inventory Valuation report may not match. For information on SYSCOST adjustments, see Article ID 10247 “What are SYSCOST adjustments in the General Ledger?” in Related Resources.
- If an inventory item class other than stock or assembly is being posted to a GL inventory account, the General Ledger and Balance Sheet will reflect the total; however, the Inventory Valuation Report will not. The Inventory Valuation reports on Stock and Assembly items only.
- If an item was sold at one price, then adjusted back into inventory at a different price, this can adversely affect valuation accuracy.
- If the same Cost of Sales GL Account is used as the Inventory GL Account, it will create a zero balance change to the Inventory GL Account at the time of sale and will cause the balances to not match.
- If the reports never matched, even in closed fiscal years, and assuming that the Inventory Valuation report is correct; a General Journal entry can be entered into the system to adjust the Inventory Account to match the Valuation report. Contact your CPA and Accounting Professional for assistance with the journal entry.
- If, after comparing the reports, the reason for the discrepancy is undetermined or if the Inventory Valuation report and Item Costing report do not match, this could be an indication of data damage. You will need to perform the inventory journal synchronization test. See Article ID 10248 “How do I run the inventory journal synchronization test” in Related Resources.
Resolution for Issue ‘Inventory Valuation report does not match inventory balance on General Ledger’ available: Yes (Solved).
Source: Sage Community forums.
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Inventory Valuation report does not match inventory balance on General Ledger: this issue or error code is a known issue related to Sage accounting products. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Sage issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If you are experiencing too many issues, you may want to do a conversion from Sage 50 to Quickbooks.
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