Balance Sheet - Inventory Asset

missmissySEI · ‎February 19, 2024

When I run my Balance Sheet the inventory asset dollar amount does not match the dollar amount of my Inventory Valuation Summary. I thought the balance sheet would show the amount of my inventory on hand. Why would these numbers not match? I would just like to understand where QuickBooks is bringing that dollar amount from. Thank you

SashaMC · ‎February 19, 2024

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).

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.
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.
Open both Transaction Detail and Inventory Valuation reports. (Window menu > Tile Vertically)
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.

View solution in original post

SashaMC · ‎February 19, 2024

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).

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.
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.
Open both Transaction Detail and Inventory Valuation reports. (Window menu > Tile Vertically)
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.

Eleanor Cleverence

Hey, I get your confusion here - numbers not adding up is just a headache. So, this kinda mismatch pops up fro a few reasons. The Balance Sheet in Quickbooks shows your inventory asset account value, basically the cost of stuff you have. But, the Inventory Valuation Summary? That one’s looking at things like open purchase orders, stuff not billed yet, or stuff not received yet, which your financials haven't put on paper yet.

Sometimes you record transactions that hit the inventory asset account but aren't repping your physical goodies (like journal entries). Timing's a huge factor too - when stuff gets recorded or when you make inventory tweaks not lining up between modules.

Make sure to double-check your items are linked right with the accounts and all transactions are in before you run the reports. A deep dive into QuickBooks transaction history or inventory stuff can help find the problem. I've had to do that, and trust me, it’s a bit of a grind. Run a reconciliation report if you need to spot errors. Keep me in the loop if ya need more help!

Eleanor Cleverence

You're not alone; this mismatch happns more than you'd think. QuickBooks pulls its inventory asset numbers from yo accounting transactions, while your Inventory Valuation Summary relies on the inventory records per your accounting method, like average cost or FIFO. They're lookn at different data sets.

Here's the deal: if you got transactions that haven’t been matched right or there's a procedural mess-up, taht can cause issues. Maybe u posted some adjustments or returns that didnt flow through properly, or there might be an issue with timing or syncing, especially if ur using an outside inventory management tool. This stuff can get real tricky.

To try to fix this, make sure all your transactions are up to date and spot on. Double-check recent manual entries or adjustments. Running reconciliation between movements in inventory and Balance Sheet adjustments could help. Being proactive here helps keep things straight. And if it feels tangled, reach out to somone who's seen this QuickBooks mess. Sometimes a fresh set of eyes catches something you might jsut miss. Good luck!

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Balance Sheet - Inventory Asset