Balance Sheet - Inventory Asset

Hello missmissySEI,

Welcome to the QuickBooks Community! If that is happening, it means that your data file has a discrepancy in the Inventory Assets account. This may occur if:

• You have transactions to the Inventory Asset account that do not have inventory items.
• You have inactive inventory items that have a non-zero value.

Also, the Balance Sheet report draws information from the accounts, whether they are associated with items or not. The Inventory Valuation reports draw information from items only. This means that transactions using inventory items show on both reports, but transactions without inventory items only on the Balance Sheet report.

Some examples of transactions that will show on the Balance sheet but not the Inventory Valuation reports are as follows:

• Bills, checks, and credit card charges with the Inventory Asset account on the Expenses Tab.
• Journal entries using the Inventory Asset account.
• Inventory adjustments are offset to the Inventory Asset account instead of a COGS account.

We do have a few solutions to try to fix the issue. Here's the first one:

Close all QuickBooks windows. (Window menu > Close All).

1. Open the Inventory Valuation Detail report.
   1. From the Reports menu, select Inventory then choose Inventory Valuation Detail.
   2. Select the Dates drop-down and choose All.
2. Open the Transaction Detail report from the Balance Sheet.
   1. From the Reports menu, select Company and Financial then choose Balance Sheet Standard.
   2. Select Customize Report.
      1. Set the report date range to All.
      2. Set the report basis to Accrual.
      3. Select Ok.
   3. In the Balance Sheet report, double click (quick zoom) the Inventory Asset amount to open the Transaction by Account detail report.
   4. In the Total By drop-down, choose Item Detail.
   5. Close the Balance Sheet report.
3. Open both Transaction Detail and Inventory Valuation reports. (Window menu > Tile Vertically)  
4. Compare the two reports.
   • 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.

This article includes a few more, so please check it out:

• Balance Sheet and Inventory/Stock Valuation reports show different amounts for Inventory Asset accou...

Let me know if you have any questions or concerns; I will be around. Bye for now.