COGS reconciled to inventory movements and production
Cost of goods sold should match what actually left inventory, but proving it takes shipments, production records, and GL detail in one workbook and a chase for every difference. Each period, the Accounting Agent assembles that reconciliation and surfaces the items that don't tie, with context.
What the Accounting Agent prepares
- A COGS reconciliation that ties the GL to inventory relief, shipments, and production records
- Matching at the level your team works: SKU, location, product line, or entity
- Unmatched or mistimed items flagged, such as shipments without inventory relief or relief without a sale
- Standard cost, purchase price, or production variances broken out, where you track them
- Proposed adjusting entries for the differences you decide to book
How it works
- Pull the data. GL detail, inventory movements, and production or fulfillment records come from your ERP and connected systems.
- Prepare the work in your logic and format. The Accounting Agent applies your matching rules, tolerances, and workbook layout.
- Review and approve. You work the open items, decide what to adjust, and approve. Any adjusting entry posts to your ERP after approval.
What stays in your control
- Your team decides which differences get booked
- Proposed entries post only once approved
- The reconciliation, open items, and sign-offs stay with the close task for audit
Standard note
FAQ
What is a COGS reconciliation?
A COGS reconciliation confirms that cost of goods sold in the GL matches the inventory relieved for goods sold in the period. Differences point to timing issues, costing errors, or missed entries. For manufacturers, production records add another layer, because costs flow from raw materials through work in process before they reach COGS.
How does Ledge reconcile COGS?
The Accounting Agent pulls GL detail with inventory and production records, matches them using your rules, and flags what doesn't tie, with proposed entries for your review.
Is this the same as an inventory reconciliation?
They are related but different. An inventory reconciliation ties the inventory balance to counts and the subledger, while a COGS reconciliation ties the expense to what moved out. Ledge prepares both.
