How to Reconcile the Inventory

This is what happens in the video

First of all, you have to make sure to run the cost batch job, if you don’t have automatically inventory posting, so in the inventory setup, there’s a check mark saying automatic cost posting, and there’s an automatic cost adjustment set to “always”, if those are set to true, you don’t have to do anything.

If not, you must run the adjust cost entries batch job.

So, there’s an adjust cost item entries, that’s a batch job that makes sure, that all the item entries are adjusted and you can post those into the G/L, to make sure that everything is updated.

When this is done your G/L should be reconciled with your inventory.

Let’s look into our chart of accounts and we go to the inventory accounts, in this scenario we have defined accounts for manufactured items, resells, raw materials etc.

and a total.

In this scenario, I don’t have any manufacturing, therefore I don’t have any work in progress in my WIP account.

Now there’s a report called inventory valuation and this should show you the ending date you prefer and should be the same date as you are using in your chart of accounts, when viewing your entries and you can see the totals of your finished goods coming from the inventory posting group, this means it’s a posting group with finished goods.

There’s value of 135,000, you can see on the raw material we have to flip the sides.

There’s some raw material on 116,000, there’s a resale posting group and there’s a semifinished posting group, in our scenario.

Each of those has a value and it sums up to a total.

The total of all the amounts, should equal your amount in the chart of account.