Inventory counts, subledger, and GL in agreement
Counts, the perpetual subledger, and the GL rarely agree on the first pass, and the differences hide across items and locations. The Accounting Agent lines up all three each period, flags what does not agree, and drafts the adjusting entries for review.
What the Accounting Agent prepares
- The inventory subledger valuation tied to the inventory GL accounts
- Physical or cycle count results compared with subledger quantities, by item and location
- Discrepancies flagged with their quantity and value impact
- Drafted adjustment entries for count variances and other differences you confirm
- A working paper with count, subledger, and GL source tabs
How it works
- Pull the data. The Accounting Agent pulls the inventory subledger and GL balances from your ERP, along with count results from your inventory system or a file your team provides.
- Prepare the work in your logic and format. It compares the three sources using your tolerances and builds the reconciliation in your format.
- Review and approve. You investigate the flagged discrepancies and approve the adjustments, which then post to your ERP. Nothing posts before approval.
What stays in your control
- Tolerances and decisions on each discrepancy stay with your team
- Inventory is never adjusted on its own: adjustment entries post only after a reviewer approves them
- Each difference traces back to the item, location, and source record
Standard note
ASC 330 sets how inventory is measured, generally at the lower of cost and net realizable value.
FAQ
What is an inventory reconciliation?
It confirms that physical quantities, the inventory subledger, and the general ledger agree, and explains or corrects any difference. Teams typically run it after a physical or cycle count and again at period end.
What causes inventory discrepancies?
Common causes include receipts or shipments recorded in the wrong period, unrecorded scrap or shrinkage, count errors, and costing differences between the subledger and the GL.
Where does the count data come from?
Count results can come from your inventory system or from a count file your team provides. The Accounting Agent compares them with the subledger every time it runs.
