At every month end, the balance in item valuation report is not matched with G/L balance. I retrieved everything from all the modules and posted in the period according to the transaction date. The external accountant used this balance to confirm the G/L balance and asked me why they are not matched. Any help is appreciated!

my experience has been that it is all in the set up of the categories and where the items are getting cleared through on the GL. For example....I had a nut and bolt categories that inventory items under this category were being received and not posted to the inventory, but rather expensed on the GL. the item would show on the listing, but not on the GL.

Actually, the inventory control account is assigned to a GL account in Edit Account Sets.
In Laura's case it appears that the Inventory account is set to an expense account, or the AP clearing account is the same as the Inventory account.
Control Accounts like the Inventory should only be posted to by the Inventory module, and only for the Inventory Control account. Adjustments should be made to expense accounts.
Look for a posting that does not belong, or is zero because both sides of the transactions were posted to the same account.

Thanks for your help. I checked our inventory control account and found that adjustments were posted to the expense account and assembly costs were also credited to the expense account. The reason for the unmatched balances is still not found.

Hi Jing

When the GL balance and the Item Valuation report don't match at month end, what I do is to reconcile them daily and keep a chart of the difference each day. If the difference is steady, then I'll switch to weekly, and if the difference is still steady then I know that the problem is likely a one-time anomaly in the past and I make a GL adjustment.

If the difference is changing daily, it's much easier to reconcile one day than a whole month.

Steve