Sage Peachtree


Inventory Valuation Report does not match the GL or Balance Sheet


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Answer ID: 6507

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My Inventory Valuation Report does not match my General Ledger or Balance Sheet for the accounting period. What caused this, and how can I correct it?

Special Considerations or Warnings


Solution or Workaround

The Inventory Valuation Report, General Ledger, and Balance Sheet should always agree. Below are the most common reasons for discrepancies between the reportsand their corresponding accounts.

Note: If you are comparing the Inventory Valuation Report and Balance Sheet or General Ledger, make sure all three reports are standard or predefined reports. The reports should also be for the same accounting period. In addition, verify that the Inventory GL Account is not also used as the Cost of Sales account on any of the inventory items. This will create a zero balance change to the Inventory GL Account at the time of sale. The same Cost of Sales GL Account should not be used as the Inventory GL Account. This will cause the balances to not match.

  1. If the beginning balance amount for the GL Inventory Account did not match the beginning balance amount for your physical inventory, or the Beginning Balance at the start of your fiscal year did not match your ending balance of the previous year, the reports will not match.

  2. If any entries were posted to the Inventory Account that did not originate in either the Sales Journal (SJ), Purchase Journal (PJ), Cash Receipts or Disbursements journals (CRJ or CDJ), or Inventory Adjustment Journal (INAJ), then the reports and the account(s) will not match. For example, General Journal entries will not affect the Inventory Valuation Report, but will affect the totals on the Balance Sheet, and General Ledger.

  3. If any SYSCOST Adjustments were posted to the General Ledger, then the Inventory Valuation Report may not match. SYSCOST Adjustments are created when an item is sold into the negative then purchased at a different price than the last time it was purchased. For more information on SYSCOST Adjustments refer to Answer ID 371  click here.

  4. If any inventory item class, other than stock or assembly is being posted to a GL inventory account, the General Ledger and Balance Sheet will reflect the total; however, the Inventory Valuation Report will not. The Inventory Valuation Report reports on Stock and/or Assembly items only.

  5. If an item was sold at one price, then sent back and adjusted back into inventory at a different price, this can adversely affect valuation accuracy.

  6. If the Inventory Valuation Report and Item Costing Report do not match, this could be an indication of data damage. Performing the Inventory/Journal Synchronization Integrity Test may correct the damage.
  7. If the reports never matched, even in closed fiscal years, and assuming that the Inventory Valuation Report is correct, a General Journal entry can be entered into the system to adjust the Inventory Account to match the Valuation Report.

  8. If, after comparing the reports, the reason for the discrepancy is undetermined you will need to perform the Inventory/Journal Synchronization Integrity Test.

Install the Integrity Check.

Warning: It is vital that you back up your company before you use the Integrity Check; if the procedure is not successful, you may lose valuable data. This procedure can take a very long time depending on the size of your data files.

If your company has passwords, please use the password that provides unlimited (administrator) access.

Important: Integrity Check is not to be used casually. While it is very useful, it does not repair all data problems, and in some instances can cause other problems when more than one test is run simultaneously or unnecessarily. Therefore, this utility is not readily accessible from the program menu. Peachtree strongly recommends that the Integrity Check should beused only after consulting Peachtree Customer Support, a FAQ from Peachtree's web site.

First, run Data Verification to do so:

  • Change to Accounting Period 1 (Tasks, System, Change Accounting Period, select 01 and click OK).
  • Click File, Data Verification.
  • Select the option for Both Tests and click START
  • Click SAVE to save the backup.

When the test is done review your reports again. If there is still a discrepancy, do the following:

  1. Select Start, and then select Run. On the Open line, type

    "C:\Program Files\Sage Software\Peachtree\Peachw.exe" -i

    (where a space, minus sign, and the letter i follow the EXE").
    (C:\ Program Files\Sage Software\Peachtree is the default directory where Peachtree is installed. Where C: is the drive Peachtree is installed on, and Peachtree is the folder you installed Peachtree into. If you installed to a different directory, change the above path to reflect that location.

    Figure 1

    Peachtree will open and Integrity Check will now be available from the File menu. 

  2. Always make a Backup of your data and give it a unique filename, if you are backing up to your hard drive. If you are making your backup to floppy disks, use new disks. Do not overwrite a previous backup.

  3. Go to File, Integrity Check. Click Continue only IF you have successfully created a backup.
    In the File Tests box, check Reindex Files on the left, choose Chart on the right, and click OK.

  4. When finished, go to File, Integrity Check. Click Continue.
    Put a check mark in the box Reindex Files on the left, choose Jrnl Header on the right, and click OK.

  5. When finished, go to File, Integrity Check. Click Continue.
    Put a check mark in the box Reindex Files on the left, choose Jrnl Rows on the right and click OK.

  6. When finished, go to File, Integrity Check. Click Continue.
    Put a check mark in the box titled Inventory/Journal Synchronization Tests, and click OK.

Make a note of any errors encountered along the way. Do not interrupt this test.

Once the test is finished, check your reports to see if the issue is resolved.

Does this article apply to my products?

Products: Peachtree by Sage Quantum 2011, Peachtree by Sage Premium Accounting, Peachtree Premium Acctg Accountants Edn, Peachtree Premium Acctg / Construction, Peachtree Premium Acctg / Distribution, Peachtree Premium Acctg / Manufacturing, Peachtree Premium Acctg / NonProfit, Peachtree Complete Accounting, Peachtree by Sage Pro Accounting, Peachtree by Sage Quantum 2010, Peachtree First Accounting, Peachtree by Sage Quantum 2009, Peachtree by Sage Quantum 2008
Applications: Reports & Forms
Version Reported: 2012,2011,2010,2009,2008
Version Resolved: