Differences between the Inventory Control Account and the Inventory Valuation Report will be the result of the following:
If this situation arises, the following corrective steps should be taken:
Please ensure that a backup is made before doing this.
The corrective steps are divided into three parts:
Step 1 and 2 will be done using Inventory Journals, step 3 can be done using the General Journal.
Step 1 - Reversing inventory items
Before any journals are done, the following options must be selected (Ensure that the checkboxes for these options are checked):
Step 2 - Entering correct inventory items
Step 3 - Correcting the General Ledger Accounts
Compare the balances of the Inventory Valuation Report to the Inventory Control Account in the Trial Balance - Any discrepancies need to be journalized. You will need to determine which accounts are affected in these journal adjustments.
Note that after the above steps have been completed, the following options must be unchecked: