When you run your stock on Balance sheet in an Inventory account such as Asset:Inventory or Asset:Stock on Hand you can check this value of stock against the Stock Value report in Saasu. This reconciliation process would also be done alongside Accounts Payable and Accounts Receivable reconciliations.
Sometimes these get out of line due to data entry, account coding or other issues. Here's a few examples that can cause this account to get out of balance:
- When you setup your Items you would normally specify the Balance Sheet account that you hold inventory in such as Asset:Inventory. If however you setup the item and use the incorrect account then the stock won't necessarily be booked to the balance sheet when you buy it in.
- Inventory Adjustment transactions are often used to write-down, write-up or write-off stock value. Sometimes Saasu users mistakenly code this transaction to their Asset:Inventory accounting instead of the appropriate Expense: Damaged Goods account (in the example of write-down or write-off)
- When you start using Saasu you may enter your opening balances into the Saasu opening Balances screen. However if you are a business that trades stock. You should Purchase your inventory into Saasu after setting up your inventory Items. This makes sure that value will be available in the inventory system and thus the Stock Value report when you run it.
- If you enter any transaction in Saasu and code to the Asset:Inventory account you are adding value into the balance sheet. However if this transaction isn't a true Inventory type Purchase or Sale then you aren't capturing the stock quantity and value inside the inventory system.
Typically accountants will run the Balance Sheet and Stock Value reports for the same date to verify they match. If not they tend to re-run the reports back through time until they get a match. Then they will run the report for each day or week in that month to find the day where the error occurred. They then investigate using the General Ledger Report or possibly the Item History Report report to work out why there is a difference.