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Q: Which forms have an affect on inventory counts (Quantity on Hand)?

A: Here is a list of every form that affects Inventory counts (numbers). There are other forms that affect inventory on the GJ (dollar values).

Company Menu

  1. Non-Serialized Inventory Adjustments
  2. Serialized Inventory Adjustments

Customer Menu

  1. Invoices
  2. Sales Receipts
  3. Credit Memos/Refunds

Vendors Menu

  1. Bills
  2. Item Receipts
  3. Vendor Credits

Banking Menu

  1. Checks
  2. Credit Card Charges
  3. Credit Card Credits

Q: Why do Balance Sheet and Inventory Valuation reports show different amounts for Inventory Asset account?

A: Check these possibilities.

  1. You have transactions to Inventory Asset account that do not have inventory items.
  2. You have inactive inventory items that have a non-zero value.

The troubleshooting steps will depend on the cause of discrepancy.

Look for transactions to an Inventory Asset account that do not have inventory items. The Balance Sheet report draws information from the accounts whether they are associated with items or not. The Inventory Valuation reports, however, draw information from items only. This means that transactions using inventory items show on both reports but transactions without inventory items show only on the Balance Sheet report.

Some examples of transactions that will show on the Balance sheet but not the Inventory Valuation reports are as follows:

  1. Bills, checks credit card charges with the Inventory Asset account on the Expenses Tab.
  2. Journal entries using the Inventory Asset account.
  3. Inventory adjustments offset to the Inventory Asset account instead of a COGS account.

To fix the issue, try one these recommended solutions:

Solution 1: Use the Balance Sheet and Inventory Valuation reports to find all transactions causing the discrepancy
Solution 2: Find bills or checks that affected the Inventory Asset account without using items
Solution 3: Find and correct journal entries that affected the Inventory Asset account without using items
Solution 4: Find and correct inventory adjustments that use the Inventory Asset as the adjustment account
Solution 5: Find inventory adjustments with dates in the future

Q: Why do we have Inactive inventory items that have a non-zero value

A: The Balance Sheet report displays both active and inactive inventory, but the Inventory Valuation Summary report can include inactive and active inventory items. The value of an inactive item is included in the Balance Sheet because it affects the Inventory Account but it is not included in the Inventory reports because it is inactive.

To fix the discrepancy, try one of these solutions.

Solution 1: Reactivate the item
Solution 2: Adjust the item quantity