The common reasons for discrepancies between the reports and their corresponding accounts:

• Data entry mistake
• Inventory out of synchronization
• Filters used in the Inventory Valuation Report
• Filters used in the Inventory Stock Status report
• In a Cash Basis Company

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 NOTE: When comparing reports, use only standard or predefined reports with the same date range. 

Are any filters selected?

• The Inventory Valuation Report won't match with any filters selected (Active/Inactive, Item Class, Item type, etc.)
• On the Inventory Valuation Report select Options, click Clear All Filters, then click OK

Did the Inventory GL beginning balance match your physical inventory?

The reports won't match if the beginning balance for your General Ledger Inventory account doesn't match what you actually had in stock.  This is usually the result of one of the following errors:

• The beginning balance for the GL Inventory account didn’t match the beginning balance for your physical inventory
• The Beginning Balance at the start of your fiscal year didn’t match your ending balance of the previous year

Were any non-inventory entries posted to the Inventory account?

• The Inventory Valuation report only tracks entries from the following journals:
  • Sales Journal (SJ)
  • Purchase Journal (PJ)
  • Cash Receipts (CRJ)
  • Disbursements Journal (CDJ)
  • Inventory Adjustment Journal (INAJ)
  • Cost of Goods Sold Journal (COG)
  • Assemblies Journal (ASB)
• If you post any entries from other journals to the Inventory account, then the reports and the account won't match
• For example, General Journal entries won’t affect the Inventory Valuation report but will affect the Balance Sheet and General Ledger

Do SYSCOST adjustments show on the General Ledger?

• If you make any SYSCOST Adjustments to the General Ledger, then the Inventory Valuation report won't match

Are items other than stock items posted to the GL Inventory account?

• The Inventory Valuation report only counts items from the following classes:
  • Stock
  • Serialized Stock
  • Assembly
  • Serialized Assembly
  • Substock 
• If you post a different item class to a GL inventory account, it won't affect the Inventory Valuation Report
• All item classes posted to GL inventory accounts affect the General Ledger and Balance Sheet
• This will cause the Inventory Valuation report not to match the General Ledger and Balance Sheet

Did you return any items into inventory?

• If you sold an item, then returned it to inventory through a Credit Memo, this can cause discrepancies

Do inventory items use the same GL account for Cost of Sales and Inventory?

• Cost of Sales GL Accounts must be separate from Inventory GL Accounts
• If you use the same account for both functions, a sale will result in no net change to the account
• This causes reports and balances to mismatch

Did the reports ever match?

• Did the reports never matched, even in closed fiscal years?
• If not, is the Inventory Valuation report is correct?
• If so, a General Journal entry can adjust the Inventory Account to match the Valuation report
• Contact your CPA and Accounting Professional for assistance with the journal entry

Are you in a cash basis company?

• In the Cash Basis accounting method, the GL only updates when you receive payment
• However, the Inventory Valuation Report updates when you enter a bill or invoice
• The difference in dates between when you enter an invoice vs when you enter a payment causes the report not to match

Is the problem still unresolved?

• If you've tried all the above and still don't know the cause, your data may be damaged
• You’ll need to perform the Inventory / Journal synchronization test