Out of Balance inventory value

[SWI-Accounts]

Hi guys,

Need help here.

Recently I just run the inventory value reconciliation report and found out that my inventory value is difference with "Balance Sheet Inventory Value".

Anyone could help me how to fix this?
Thank you

Regards

SWI

[Neil_M]

Hi @SWI-Accounts 

Generally speaking an out of balance between the inventory value and the account balance is normally indicative of one or more transactions are incorrectly assigned to that account or that the opening balance of the account has been changed.

In terms of tracking down the incorrect transaction, you would be looking at running the report for say a monthly period, each time running the report for a prior month. For example April 2020, March 2020 and so on. What your looking for is the point where the report does not show an out of balance figure.

Once you’ve found the point where the account is in balance with the inventory figures, then you can run the report on a week by week basis going forward to find the week where the out of balance came about. You can then review all of the transactions in that week to find any and all transactions that impact that account and review them to see if they are correct.

[SWI-Accounts]

Hi @Neil_M 

I have checked the opening balance and also run the review by monthly basis as per your suggestion.

I find out that we have that out of balance amount since we start using MYOB (amount difference was about $800).

and the out of balance amount was decrease to $94.

I have reviewed all the transaction entered during that period but did not find any error or mistake in the entry.

Any suggestion to close off this $94?
Thank you.

Regards

Tommy

[Neil_M · Accepted solution]

Hi @SWI-Accounts 

If the out of balance goes all the way back to the start of the file, this would generally indicate that the opening balance on that account has been changed. The only way to double check this would be to restore a backup or two from different points in the past and checking the opening balance of that account.

If you were wanting to resolve it using a journal entry to remove the out of balance on the account, I recommend speaking with your accountant over how that journal entry should look. Do note that this will only correct the out of balance for after the journal is recorded. If you ran the report for after before the journal entry was recorded the out of balance will still exist.