The Inventory Asset account balance and Inventory Valuation reports do not match

Legacy KB ID: 3730

Question

Why doesn’t my Inventory Asset account balance match the totals on the Inventory Valuation reports?

Answer

There are several reasons why the Inventory Account balance may not match the totals on Inventory Valuation reports:

1.    A bill or cheque has been written to the Inventory Asset account without being associated with an inventory item.

2.    An inventory item with an asset value was made inactive.

3.    A general journal entry affecting the Inventory Asset account was recorded.

4.    When adjusting inventory, the Inventory Asset account was used as the adjustment account.

5.    Inventory adjustments are dated in the future – the reports will count adjustments inside the date range while the Chart of Accounts will count all adjustments.

 

Detailed Instructions

Identify the reason for the difference and follow the relevant instruction below.

 

1. A bill or cheque has been written to the Inventory Asset account without being associated with an inventory item.

  • Go to the Reckon Accounts Reports menu and click Custom Summary Report.
  • Click the Display tab, and then choose All from the Dates drop-down list.
  • From the Display rows by drop-down list, choose Item type.
  • Click the Advanced button, and then select Non-zero in the Display Rows column.
  • Click OK.

  • Click the Filters tab.
  • In the Choose Filter box, select Account, and then choose Inventory Asset from the Account drop-down list.
  • Click OK to run the report.
  • If a No Item row appears on the report, double-click the amount in the row.  If it is just one transaction the entry form will open.  Otherwise, a QuickZoom report will open.  Open the transaction and associate an item with it. 

  

2. An inventory item with an asset value was made inactive.

To make the items active again:

  • On the top menu line, click on List and select Item List.;
  • At the bottom of the window check the box Show Inactive.
    ;
  • Click on the grey X next to every Inactive Item that should be Active.
  • For each inactive item that shows a number in the On Hand column, do one of the following:
    • Select the Vendors menu and select Inventory Activities > Adjust Quantity/Value on Hand
    • Select the inactive item for which you want to adjust the quantity or value.
    • Enter 0 in the New Qty field to zero out the inventory, or select the Value Adjustment checkbox and enter 0 in the New Value field;
    • Use the drop-down arrow in the Adjustment Account field to select the account to use for the adjustment;
    • Click the Save & Close button.

 

3. A general journal entry affecting the Inventory Asset account was recorded without using the Adjust Quantity/Value on Hand to account for the inventory discrepancy.

Run a Transaction Detail by Account report to find, delete, and then re-enter these transactions:

1.       Go to the Reckon Accounts Reports menu:

  • choose Accountant & Taxes, followed by Transaction Detail by Account.

2.      Choose All from the Dates drop-down list, and then click Modify Report.

3.      Click the Filters tab and in the Choose Filter box:

  • Select Account,
  • Choose Inventory Asset from the drop-down list;
  • Select Transaction Type, and then choose Journal from the drop-down list.

5.      Click OK to run the report.

6.      Delete all transactions on the report, and then re-enter them:

  • Go to the Vendors menu, choose Inventory Activities.
  • Click Adjust Quantity/Value on Hand, and then enter the adjustment.

          

4. When adjusting inventory, the Inventory Asset account was used as the adjustment account.

Run a Transaction Detail by Account report to find and edit these transactions:

1.       Go to the Reckon Accounts Reports menu;

  • Choose Accountant & Taxes;
  • Then Transaction Detail by Account.

2.      Choose All from the Dates drop-down list, and then click Modify Report.

3.      Click the Filters tab and in the Choose Filter box:

  • Select Account;
  • select Inventory Asset from the drop-down list;
  • Beneath the drop-down list, select For detail accounts matching, and then choose Inventory Asset from the drop-down list;
  • Select Transaction Type, and then choose Inventory Adjustment from the drop-down list.

5.      Click OK to run the report.

6.      Double-click a transaction to open it for editing purposes. Edit the transaction by        selecting a different adjustment account.

         

 5. If inventory adjustments are dated in the future.

Change the date range to include all future adjustments.

Return the Inventory Valuation report.


 


Need more help?

Ask the Reckon Community at: https://community.reckon.com/

Or Log a Support Ticket: https://www.reckon.com/au/support/

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