Inventory Value Reconciliation Out of Balance

[AOC]

Hi 

My client is using MYOB AccountRight Premier v19.5 and we are continuously having problems with the Inventory Value Reconciliation Report being "Out of Balance" .  It is not a substantial value but a difference none the less.

We manually corrected it by way of journal entry at the end of January 2015 only to have it out of balance again at the end of February and March (out of balance value has changed).  

I have checked the postings against the inventory GL account and there are no entries besides postings from the Inventory Journal, Purchases Journal and Sales Journal.  

The inventory settings also seem to be correct.

They import 90 % of their products and use foreign currency and I was wondering whether the difference could possibly be related to this.

Has anyone experienced this probem before and do you have any suggestions on how to deal with it going forward.

Thanks

Jacqui

[Will_SolnX_NZ]

Hi @AOC (Jacqui),

The things i'd check are:

1. Export a copy of their items list, make sure that all of their items have correct inventory accounts set up.
2. Confirm if they're using the ability to receive items against purchase orders, if so, make sure they're completing the purchasing process completely.

The most common problems I saw with inventory reconciliation in AccountRight were all to do with:

1. Improperly configured items (usually easy to tell),
2. Sales/Purchase orders being directly coded to the account, when they shouldn't be.
3. People receiving items agaisnt purchase orders, but not finishing the purchase order receipt process.

While AccountRight has the ability to receive items without entering a purchase invoice, it has to do a lot of back calculation to do it, and it's quite common for it to generate weird balances if this section is used extensively.  EXO Business or Advanced Business handle these processes a lot better, if your client is at the upper edge of the AccountRight size bracket and doing a lot of complex inventory, might be worth them investigating.

[AOC]

Hi Will

Thanks for your advice.

I have reviewed their inventory details and they appear to have this correctly set up.  

They are using purchase orders however they seem to be running through the process correctly.

Unfortunately, the client is not at a level which would warrant using EXO business or Advanced business.  

I have never come across this before and am quite confused as to the reoccurring issue.

Regards,

Jacqui

[jenniek]

Hi Jacqui,

Is someone doing inventory adjustments and coding to the asset account instead of a COGS acc?

[Steven_M]

Hi @AOC

I would recommend taking a look at Support Note: Inventory value reconciliation It does provide a full list of possible causes and how to correct those causes.

Do let us know if you required further assistance after taking a look through that Support Note.