Hi there, krbs.
You might want to double check if the adjustments are correctly entered. If everything's fine, you'll want to verify and rebuild your data to fix this. Discrepancies on reports, names are missing from lists or fatal errors are some common reasons why we need to use the Verify and Rebuild Feature.
Let me know how this worked. I'll be here to help you.
I have a questions about this topic also. I'm helping a company reconcile their inventory according to their quantities and values for 2/28/2019. Another worker entered end of the year adjustments (A LOT) in December and January and it created values that are in the millions when should be thousands. He only adjusted the quantity and I cannot fix it. The balance sheet shows -$11M and inventory value should only be around $1.5M. I want to correct January before moving into February, however, the adjustments are so far from where they should be, I don't know where to begin. He originally used an inventory asset account and I corrected to COGS to remove them from the No Item section on the Transaction Detail section. There are also several Journal Entries to Inventory Asset accounts that are incorrect. Any suggestions?
Thanks for providing on-point details about your situation, @mb722.
I'll help ensure you're able to reconcile the company's inventory that you helped.
The program used the Source and Targets concept when displaying reports. The Source is the summary information about a transaction. The Targets provide the detailed information about the transaction. For more information, you can check out this helpful article: Understand Reports.
To help locate the discrepancies, you'll need to open each transaction on the Balance Sheet Standard report. This way, you can check each transaction and verify the items that aren't showing on the report. Here's how:
You can also use the Balance Sheet Detail report since it displays the adjustments column which indicates if an account has had any manual adjustments made to it. For more details, here's a great article you can refer to: Customize Company and Financial Reports.
While I'm unable to suggest deleting the incorrect journal entries, you'll need the assistance of an accounting professional. By doing so, he/she can advise the appropriate treatment to help ensure your inventory reconciliation is correct.
I'm here anytime you have other concerns, @mb722. Have a good day.
Thanks @RaymondJayO! I have done that already. I have reconciled the inventory as far as February goes, however, it's the adjustments that happened in December that are still affecting the balances. I am assuming I need to make a journal entry so that going forward, we will be able to reconcile.
Creating a journal entry to correct the discrepancy also works.
You might want to check out this helpful article for your reference: Fix Reconciliation Discrepancies.
We're always here if you have other questions. Just click the Reply button anytime.