Hello, this article will go over using the inventory audit report to map raw materials, items, quantities and cost to GL Accounts. I.e., how to create a detailed lister of raw materials inventory and finished goods that ties to the totals in GL Accounts.
- Inventory Audit Report
- This report provides an audit trail for the posted inventory transactions in the chart of accounts. You use this report to make comparisons between the accounting view (inventory balance accounts) and the logistics view (inventory value displayed by the audit report). The report explains the value changes in inventory accounts.
- Running this report over a broad date range can potentially take several minutes and may time-out your system if reporting over a large volume of transactions. In order to mitigate the run-time and possible time-out, run the report over the following recommended Selection Criteria settings:
- Select Posting Date. Posting date is financial. System date is the actual day the inventory transaction was added/created.
- From and To Dates should be the same date. Typically only the cumulative quantity and value as of a specific date are needed. If you need to investigate a specific quantity/value, you can drill into the product’s item master and with a right-click run its specific Inventory Audit Report to view transactional detail.
- Item Codes – Keep them blank to run the report over all inventory items
- G/L Accounts – Leave uncheck to run the report over all inventory items. When reconciling inventory to the balance sheet, it’s useful to use this filter to view all inventory in a single G/L account.
- Warehouses – Select all warehouses to run the report over all inventory items
- Display –
- By Items – Select By Items if view by inventory items
- Summarize by Accounts – Select to view by inventory G/L accounts (won’t display any inventory items). Best when reconciling to balance sheet.
- Display OB for Items/Accounts with no Transactions – Check mark this setting in order to include the cumulative quantities and values prior to the From Date entered in the date range, i.e. to include inventory’s opening balance.
If your inventory audit report DOESN’T agree with the inventory GL accounts, then that’s a billable service to help you reconcile it.