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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Inventory Value vs Tri...
Microsoft Dynamics AX (Archived)

Inventory Value vs Trial Balance Not Same

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Posted on by benjamin84 2,065

Dear All,

our report invent value vs trial balance not match/ same.

after checked , found out there are general journal created for adjustment using account for raw material, etc.

my question is, if there are general journal using account raw material, do I need to do inventory closing again so when I generate again report invent value  will have same amount with trial balance.

of I should check with my user, if this general journal not needed, this general journal should be reversed/cancelled since this adjustment created from general journal not reflected at inventory value.

please advice.

thank you

Trial-Balance-Share_2D00_.png

Ledger-Journal-Share.png

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  • benjamin84 Profile Picture
    benjamin84 2,065 on at
    RE: Inventory Value vs Trial Balance Not Same

    Appreciate Ludwid,

    Vielen Danke

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi benjamin84,

    Here is an example:

    Your tax auditor wants that you reduce your inventory value by 2% because of some special tax accounting rules. To record this reduction you post an expense against a corrective inventory account. The corrective inventory account is a GL balance sheet account that is not used in inventory or production. The accountants can use this account at the GL level to record such manual adjustments. The advantage is that postings on the corrective inventory account do not result in an inventory GL reconciliation difference.

    Hope this helps.

    Best regards

    Ludwig

  • benjamin84 Profile Picture
    benjamin84 2,065 on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi Kumar,

    Yes, thank you kumar. appreciate

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi Benjamin84

    Sub ledger means the inventory sub ledger.  I assume you are using AX 2012, Check in the setting "Do not allow manual entry" on the inventory summary ledger or GL. Check in "Locked in Journal" setting in the GL if it's 2009. This is what i was referring in my suggest to keep inventory ledger unblocked. Hope you are clear.

    Thanks

    Kumar

  • benjamin84 Profile Picture
    benjamin84 2,065 on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi Ludwig,

    its general journal , so its not automatic inventory posting right ?

    if my user should reverse those general journal, and using new ledger account.

    could you help to help give example, how to make main account that only posted at GL level only,

    Please help.

    Thank you

  • benjamin84 Profile Picture
    benjamin84 2,065 on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi Kumar.

    For :

    the journal is posted without affecting the sub ledger.

    Is there any setting for main account that will make some journal posted will affecting the sub ledger or not ?

    and could you help to explain the sub ledger, I don't quite understand about this.

    In this case also, you need to reverse and post an inventory journal again to adjust the difference through sub ledger. yes, you may need to perform an inventory closing the for the new adjustment entry.

    Noted for perform inventory closing.

    It is not suggested to keep the inventory ledgers unblocked to allow manual entry.

    Yes, noted about this.

  • benjamin84 Profile Picture
    benjamin84 2,065 on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi Andre,

    Thank you for your reply, yes. thank you

  • Verified answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Inventory Value vs Trial Balance Not Same

    Good Morning benjamin84,

    I would recommend reversing all the transactions that have been posted on the inventory ledger accounts that are setup for automatic inventory postings.

    If your users still feel that they need to 'adjust' inventory values for whatever reason, create a couple of new ledger accounts that your colleagues can use for making inventory value adjustment postings at the GL level only.

    Then your GL-inventory balances should match again.

    Best regards,

    Ludwig

  • Verified answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi,

    you are clear about the difference. If the difference is clear, it is the question of how you want to treat the difference. if the journal is a wrong entry, it is suggested to reverse. If the journal is valid, then the question why the journal is posted without affecting the sub ledger. In this case also, you need to reverse and post an inventory journal again to adjust the difference through sub ledger. yes, you may need to perform an inventory closing the for the new adjustment entry. It is not suggested to keep the inventory ledgers unblocked to allow manual entry.

    Thanks

    Kumar

  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 291,280 Super User 2024 Season 2 on at
    RE: Inventory Value vs Trial Balance Not Same

    Hi Benjamin84,

    The inventory closing is not aware of any manual transaction on inventory accounts. This journal should not have been posted in my opinion. You have to check with the user why an amount was posted. Based on that answer, possibly other actions needs to be taken. Also check why this ledger account was not blocked for manual transactions.

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