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Inventory Valuation vs Inventory GL Variance.

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Posted on by AA-21051323-0

Hi Everyone,

My inventory GL account amount doesn’t match the amount on the inventory valuation report.

I want to post an adjustment entry for the items causing the variance. However, whenever I try to create either an item journal or a revaluation journal, both the GL and the valuation report amounts change together.

Thanks,

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Dynamics 365 Business Central

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Valentin Castravet 31,340 Super User 2025 Season 2 on at

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Why do you have a variance? Typically its because an entry was posted to the G/L Account that didn't go through the inventory subledger. I would try to find the variance and if that's the case then post an entry to the G/L Account only.

However, if you need to adjust the inventory subledger without adjusting the G/L Account, then there are several ways to do this. One way, prior to creating your item journal, go to the inventory posting group your items use and change the inventory account from your inventory G/L Account in the balance sheet to the inventory adjustment account in the income statement. This way, when you post the adjustment, the inventory adjustment account in the G/L will have both the credit and debit booked to it. After you're done, change the inventory account in the inventory posting group back to your balance sheet account.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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AA-21051323-0 10 on at

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Hi Valentin,

Thanks for replying!

No, there was no general journal manual entry posted to the inventory.

Sorry, I don't get the adjustment entry part. I would like to increase the valuation of 5 items to total of 20K without affecting the (inventory valuation report).

Thanks,

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

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How much difference is there in the amount?
If the difference is large, I agree with Valentin that manual posting may have occurred.

In any case, you need to export all the details in GL Ledger Entries and all the details in Value Entries, and then compare them.

Thanks.

ZHU

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KasparsSemjonovs 4,764 Super User 2025 Season 2 on at

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Check the General Ledger entries for this Inventory account. Filter on the Source Code = GENJNL
and check if there are any entries with this Source Code. If yes - most likely that is the reason why You have differences.

If no manual entries are shown on previous filter, then run the process "Adjust Cost-Item Entries" , and "Post Inventory Value to G/L".
After these both processes have been run (without any item no filters or anything) check the Report and Account balance once more.

If there is still a difference it would be very weird - I would say only reason would be that You have changed Inventory Posting Group accounts sometime when You already have inventory values posted, and the the difference is sitting on some other G/L account.

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CU12120828-0 8 on at

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I have the same issue where adjustment costs are showing on the Purchase Credit Memo in the GL in and out, but in Value Entries, they appear as an adjustment of that value. This only happens on returns and when using the Average Cost method.

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CU12120828-0 8 on at

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H

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