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Inventory valuation amounts in Point of Sale and QuickBooks Desktop do not match

Find out why the amounts in your Inventory report for both Point of Sale and QuickBooks Desktop are not the same.

An Inventory Valuation report consists of the monetary cost of your items that make your inventory, summarized data of quantity, average cost, and extended value.

 

Important:  It is a common misconception that since both reports in Point of Sale and QuickBooks Desktop show inventory values, they’d have to match. If you’ve been using Point of Sale or QuickBooks Desktop earlier than the other, the values in these reports will not match; thus, comparing reports is not ideal.

The Inventory Valuation report in Point of Sale gives you more accurate data since this is where you manage and track your inventory.

The data on the report should ideally reflect the figures of Inventory Asset in the Balance Sheet, given the following conditions:

  • You started using QuickBooks Desktop and Point of Sale company files at the same time
  • No transactions affecting inventory were entered in QuickBooks Desktop (unbilled purchases, invoices, sales receipt)

What happens after importing your items from QuickBooks Desktop to Point of Sale?

Items in QuickBooks doesn't automatically transfer to Point of Sale unless you import the items. After importing, the items in QuickBooks Desktop will be made inactive and it will create a quantity adjustment in both software to transfer On-hand Quantity in Point of Sale.

Since the items were imported in Point of Sale, the Inventory Valuation Report in QuickBooks Desktop will be zeroed out because of the quantity adjustment that occurred during import.

Other possible reasons the reports might not match:

  • Incorrect Inventory setup. For example, some items were tagged as Inventory when they should have been otherwise since a Non-Inventory doesn't calculate the Average Cost.
  • Incorrect Inventory management process.  For instance, manually editing the On-hand Quantity of an item instead of receiving it.
  • Adjustments entered in QuickBooks Desktop and Point of Sale
  • You have transactions under Inventory Asset that do not have inventory items.
  • Active inventory items in QuickBooks Desktop

Compare the reports

  1. Open the Inventory Valuation report in Point of Sale.
    1. From the Reports menu, select Items then Inventory Valuation.
    2. Select Today for the date.
    3. Select Apply date.
  2. Open Balance Sheet Report in QuickBooks Desktop.
    1. From the Reports menu, select Company & Financial, then choose Balance Sheet Detail.
    2. Select the date to All, and set the report to Accrual.
    3. Scroll down to Inventory Asset, then on the Balance column, compare the reports line by line to find the discrepancy.

Refer to Balance Sheet and Inventory/Stock Valuation reports show different amounts for Inventory Asset accou... for further sorting of Inventory Asset account in QuickBooks Desktop.