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Why would Inventory Valuation Summary and Balance Sheet Details be different?

I cannot figure out why the "Inventory Asset-1" on the Balance Sheet report does not match the "Inventory Valuation Summary". I've tried to find where the inventory that was adjusted to 0 may still show amounts (items entered duplicated in error or that were sold before entering the inventory) but have not found any. What am I missing?

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Best answer 12-20-2018

Accepted Solutions
Moderator

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Good day, dal1cas2.

You came to the right place for help with QuickBooks. Let's get your Inventory Valuation Summary and Balance Sheet Details report matched.

 

The discrepancy between your reports usually happens if the Inventory Asset account doesn't have inventory items. To fix this, you can follow the steps below:

 

  1. Click Reports in the left panel.
  2. Search for Inventory Valuation Detail Report in the search box.
  3. Customize the report, and select Inventory then choose Inventory Valuation Detail.
  4. Click the Dates and select All.

Open the Transaction Detail report from the Balance Sheet:

 

  1. Click Reports in the left panel.
  2. Search for  Balance Sheet in the search box.
  3. Select Customize.
    1. Set the report date range to All.
    2. Set the report basis to Accrual.
    3. Select Run report.
  4. In the Balance Sheet report, double-click (quick zoom) the Inventory Asset amount to open the Transaction by Account detail report.
  5. In the Total By drop-down, choose Item Detail.
  6. Close the Balance Sheet report.

Compare the two reports and look for these:

 

  • The two reports should be identical.
  • The differences will be at the bottom of the Transaction Detail report in a section titled No Item.
  • These transactions affect the Transaction Detail report but do not affect the Inventory Valuation Detail report.
  • If the root cause of the discrepancy is not in the No Item section, then compare the two reports line by line to find the discrepancy.

Let me know if I can be of additional assistance. Best wishes.

16 Comments
Moderator

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Good day, dal1cas2.

You came to the right place for help with QuickBooks. Let's get your Inventory Valuation Summary and Balance Sheet Details report matched.

 

The discrepancy between your reports usually happens if the Inventory Asset account doesn't have inventory items. To fix this, you can follow the steps below:

 

  1. Click Reports in the left panel.
  2. Search for Inventory Valuation Detail Report in the search box.
  3. Customize the report, and select Inventory then choose Inventory Valuation Detail.
  4. Click the Dates and select All.

Open the Transaction Detail report from the Balance Sheet:

 

  1. Click Reports in the left panel.
  2. Search for  Balance Sheet in the search box.
  3. Select Customize.
    1. Set the report date range to All.
    2. Set the report basis to Accrual.
    3. Select Run report.
  4. In the Balance Sheet report, double-click (quick zoom) the Inventory Asset amount to open the Transaction by Account detail report.
  5. In the Total By drop-down, choose Item Detail.
  6. Close the Balance Sheet report.

Compare the two reports and look for these:

 

  • The two reports should be identical.
  • The differences will be at the bottom of the Transaction Detail report in a section titled No Item.
  • These transactions affect the Transaction Detail report but do not affect the Inventory Valuation Detail report.
  • If the root cause of the discrepancy is not in the No Item section, then compare the two reports line by line to find the discrepancy.

Let me know if I can be of additional assistance. Best wishes.

ProAdvisor

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

@dal1cas2 question is related to QuickBooks Online issue. Your @RoseMarjorieA copy/paste answer is from the QuickBooks Desktop help article. You can verify the article link again. At the bottom of the help article, you will see it's for desktop, not QBO.

 

I thought you should know...

Moderator

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Hi, vpcontroller.

 

Thank you for notifying me, I've updated my answer above.

 

Have a good one.

ProAdvisor

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

@dal1cas2

 

Few Suggestions you may want to look into:

 

1) "Inventory Asset-1" account name usually means you also another Inventory Assets account in the Chart of Accounts. Or possibly the file was converted from desktop to online. You may want to check the Chart of Accounts and see if the other Inventory Asset account has any balance in the register.

 

(If you have multiple inventory assets accounts, you may need to merge into one QBO default account for proper inventory tracking.)

 

2) Inventory Valuation Summary report by default is based on an accrual basis. So, you will need to run the Balance Sheet report on the same accrual basis. Usually, the Inventory Valuation Summary reports total and Inventory Assets balance on the Balance Sheet should match.

 

With above step 1 and step 2, it should normally resolve the issue in question.

 

3) If you still have a variance between those two reports, you may need to review Inventory Assets Balance Sheet account to see if you've recorded any transactions directly to General Ledger Account. You need to filter the report by transaction type. Look for transactions like Journal Entry or Vendor forms where it was entered to Account details tab and not Item details tab.  All the items (Products/Services in QBO) in the Inventory Valuation report comes directly from Vendor forms Item details section, Sales forms, and Inv Adjustment form.

 

This should cover all the big reasons why you may have the difference between those two reports.

 

Hope this helps!

Not applicable

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?


@dal1cas2 wrote:

I cannot figure out why the "Inventory Asset-1" on the Balance Sheet report does not match the "Inventory Valuation Summary". I've tried to find where the inventory that was adjusted to 0 may still show amounts (items entered duplicated in error or that were sold before entering the inventory) but have not found any. What am I missing?


 

Community Explorer **

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Are you sure this exists in Quickbooks Online? 

"In the Total By drop-down, choose Item Detail."

I can't find it anywhere 

QuickBooks Team

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Hi there, braykart.

 

Thanks for joining this thread. Allow me to chime in for a moment and clear this out for you.

 

For QuickBooks Online, the equivalence of the In the Total By drop-down, choose Item Detail  in the Balance Sheet report is Group by Product/Service. You can check the screenshot below to visualize.

 

 

For more insights about customizing QuickBooks Online report, you can use this link as a reference.

 

That's it. Let me know if you have other questions about reports. I'm still here to help you more. Have a good one.

Not applicable

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

I'm having the same problem. The balance sheet and inventory valuation summary are not matching. I followed the steps above but there is no item listed. Now I have 3 different inventory accounts on the balance sheet and the total does not match the valuation summary.  How else can I figure out where the problem is?

QuickBooks Team

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Thank you for joining in this thread, @Afsicruz!

 

Allow me to share additional insights and help you match the amounts of your Inventory Asset accounts.

 

In addition to the information shared by my colleagues, let's choose the same Report period or date of your reports when customizing them.

 

At the same time, let's compare the amounts of your Inventory Asset accounts base on Cash or Accruals.

 

You can consider these two factors why the amounts of your accounts don't match. This way, you'll be able to review and identify if there are transactions present from the other or not.

 

Fill me in if you have any other questions about your reports. I'll be always around to help.

Frequent Contributor *

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

I am having the same issue with not reconciling to the Balance Sheet.  I am cleaning up a company's quickbooks and have several "no items" listed at the bottom of the Balance Sheet Detail.  I have never had this issue and do not know how to "clean it up".  Any help would be great as there is a large dollar amount that needs to be reconciled.

 

 

Anonymous
Not applicable

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Great to see you here, @mb722,

 

I can share some insights on how to fix the discrepancy in your Inventory Valuation Summary and Balance Sheet Detail reports.

 

The steps provided by my colleagues will help you identify where the discrepancy came from. In your case, since the difference came from the No Item entry, you'll need to look at the individual entries to determine what the offset account to use to zero out the “No Item” total.

 

To do that, scroll down at the bottom of the report to see the amount of the adjusting entry. If you're not sure which accounts to adjust, I'd recommend getting in touch with an accounting professional. They can provide the best legal and accounting advice for your business type.

 

To create a journal entry:

  1. Click the Plus icon (+).
  2. Select Journal Entry.

You can also see the steps to do the adjusting entries in this article:  Create a Journal Entry

 

Here's a great article to know more about the discrepancy in the Inventory Asset account: Balance Sheet and Inventory/Stock Valuation Reports show different amounts for Inventory Asset accou...


Please don't hesitate to let me know if you should have any questions about this. Have a wonderful day.

Frequent Contributor *

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Thank you very much!  I will use these steps tomorrow.  

Anonymous
Not applicable

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

It's nice to see you here again, @mb722,

 

You are most welcome with the steps! Please know I'm one click away if you need further assistance.

 

I'll be on the lookout for your reply. Wishing you and your organization continued success.

Not applicable

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Thank you but there is no items listed and I have tried to figure out where the discrepancy is. I tried the cash and the accrual when looking at the report and no luck. Any other ideas?

QuickBooks Team

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

Hi there, @Afsicruz.

 

Please allow me to join the thread and help share information about the difference between the Inventory Valuation Summary Report and the Balance Sheet Detail report.

 

The Inventory Valuation Summary report will only report transactions that affect the Products. On the other hand, the Balance Sheet report  will report any type of transactions that affect the chart of accounts.

 

You may need to check your transactions, the difference between the two reports could be the reason why your reports are not matching.

 

In addition, you can also read these articles to know more about these reports:

 

Don't hesitate to add a comment below if you have any other questions about running reports in QuickBooks Online. I'll be always here to help you!

Frequent Contributor *

Re: Why would Inventory Valuation Summary and Balance Sheet Details be different?

I correct most of my finished goods no items and cleared everything out.  

 

My next issue is that the raw materials (ingredients, packaging, film, etc.) are set up as items that each have the same asset, income, and COGS account.  For example, a box will have an asset, income and COGS account listed in the item set up as INV RM Inventory Packaging,  This account is classified as "other current asset".  It is my understanding that for the income and COGS accounts, they should be different.

 

Any suggestions?  Thanks!

 

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