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Balance Sheet and Inventory Valuation reports show different amounts for Inventory Asset account

You data file has a discrepancy in the Inventory Asset account:

  • The accrual basis Balance Sheet Standard run for All dates shows an amount.
  • The Inventory Valuation Summary and Detail reports for all dates show a different amount.
 

This may happen if:

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

Note: If you are using the Accountant's Edition of QuickBooks, you can use the Client Data Review that includes a tool to help resolve this issue.

Transactions to 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:

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

To resolve the problem, try one of the following solutions.

Inactive inventory items that have a non-zero value

The Balance Sheet report displays both active and inactive inventory, but the Inventory Valuation Summary report displays only 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 the following solutions.

KB ID# SLN40080
12/7/2016 8:25:03 AM
PPRDQSSWS404 9138 Pro 2017 346451