Reconcile Inventory Control to General Ledger

Print inventory reports on the last day of the month in Sage BusinessWorks. Then compare your General Ledger Account Detail Report to either the On Hand Detail Report or the Stock Status Report.

Print the following reports on the last day of the month

LIFO or FIFO costing method

1. On Hand Detail Report: Select IC, Reports, On Hand Detail Report.
    NOTE: If you have multiple GL inventory accounts, print this report for each account. 
   
2. Account Detail Report:  Select GL, Reports, Account Detail Report. Choose your current open month and inventory account.

Standard or Average costing method

1. Stock Status Report: - Select IC, Reports, Stock Status Report.
    NOTE: The Stock Status Report reflects inventory at the time of printing.
2. Account Detail Report:  Select GL, Reports, Account Detail Report. Choose your current open month and inventory account.

Reconcile the reports

LIFO or FIFO costing method

1. Compare your On Hand Detail Report to the Ending or Future Balance in your Account Detail Report. Make sure they match.
   • Does your Account Detail Report list a future balance? Use this balance to reconcile to your On Hand Detail Report
2. If the reports don't match, check the Troubleshooting tips below to find and fix the issue.

Standard or Average costing method

1. Compare your Stock Status Report to the Ending or Future Balance of your Account Detail Report. Make sure they match.
   1. Does your Account Detail Report list a future balance?  Use this balance to reconcile to your general ledger.
2. If the reports don't match, check the Troubleshooting tips below to find and fix the issue. 

    

Troubleshooting tips

  Check for transactions outside A/R and I/C modules. Use these steps to help reconcile your inventory account,

1. Review your GL, Reports, Account Detail Report for non-A/R or I/C transactions.
2. Run your IC, Reports, Transaction Detail Report for the current month.
3. Compare both reports to spot differences. 
4. Investigate any unknown transactions.
5. Make adjustments as needed to reconcile your account.

  Check your Account Detail Report for unexpected transactions These can affect inventory reconciliation. 

1. Do you see any A/P or GEN transactions on the Account Detail Report.
2. GEN transactions are general ledger postings. They don't post to your inventory.
3. A/P entries are account payable. These don't belong in your inventory account.
4. Investigate any transactions you don't recognize.
5. Make adjustments as needed to reconcile the account.

 Do you have Non-Inventory Inventory parts?

1. These will cause reconciliation issues if they share the same GL account as inventory parts.
   
2. Select IC, Utilities, Product Lines, Maintain.
3. Choose your non-inventory product line.
4. Is the inventory account assigned to the same general ledger account as your inventory parts?
   • If yes, they won't show on your On Hand Detail or Stock Status Report. They’ll appear on your Account Detail Report
   • Assign a different general ledger account for your non-inventory
   • Find non-inventory postings on the Account Detail Report
   • Post a journal entry to move them to the correct account

Tips to keep your inventory and general ledger in balance

• Reconcile on a monthly basis
• If problems occur monthly, reconcile weekly to understand what transactions are causing issues
• If necessary, reconcile daily until you find the transactions causing the difference