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Inventory Valuation - True Up

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Posted on by JG-21012024-0

Hello All,

I've identified the cause of the discrepancy between my inventory valuation and the balance sheet. The issue stems from general journal entries that were posted directly to the inventory general ledger (GL), which has resulted in an overstatement of the inventory value. The amount in question is significant and dates back to prior accounting periods. Does anyone have any recommendations or best practices on how to correct this? I'd appreciate guidance on how to properly adjust the inventory valuation and align it with the balance sheet. (NAV 2018)

I appreciate your time in advance.

Thank you!

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Microsoft Dynamics NAV

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Suresh Kulla 50,243 Super User 2025 Season 2 on at

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First, ensure that you set Direct Posting Allowed on the GL Account so that users cannot post directly to these accounts and the interim inventory accounts. Did you try running Post Inventory Cost to G/L to see if that balances the account? If not, the only other option I can think of is to create a negative adjustment entry for that account and then run Adjust Cost Item Entries and Post Inventory Cost to GL again.

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Jainam M. Kothari 15,631 Super User 2025 Season 2 on at

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Hello,

I hope in the Inventory Setup "Automatic Cost Posting and Expected Cost Posting to G/L" Booleans are On. That's why system will pas Automatic Entry to G/L Accounts.

And Kindly check the Inventory Posting Setups that the Correct G/L are mapped or not.

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Gerardo Rentería Ga... 25,169 Most Valuable Professional on at

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Hi, good day
I hope this can help you, and give you some hints.

Reconcile inventory costs with the general ledger - Business Central | Microsoft Learn

facing difference between inventory valuation report and G/L account

Inventory Valuation vs Inventory GL Variance.

Best Regards
Gerardo

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JG-21012024-0 58 on at

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So I should clarify that the entries made to the GL inventory account weren't even inventory related. When it was discovered that the inventory valuation wasn't matching there was journal created to "true up" the inventory instead of finding the culprit.

Thank you!

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YUN ZHU 95,331 Super User 2025 Season 2 on at

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Hi, Is there an order that has not been invoiced? Please try Inventory - G/L Reconciliation, which can show the amount of Inventory (Interim)

Hope this helps.

Thanks.

ZHU

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Khushbu Rajvi. 20,275 Super User 2025 Season 2 on at

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Hope this helps as well: https://learn.microsoft.com/en-us/dynamics365/business-central/design-details-inventory-valuation

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