Inventory to GL Reconciliation Series – Introduction

For the past several years, I’ve presented sessions on Reconciling Inventory to the GL for Dynamics NAV and Business Central at various events such as Focus, Summit, Directions, All-Star webinars and others. With over 26 years working in BC/NAV and helping numerous customers reconcile inventory to the general ledger, my knowledge on this subject has expanded.  The more I think I know, the more I am taught that there are situations and related impacts that I never thought existed. Associates in the NAV/BC community continue to show me new and interesting issues that they have found, fixed or need help fixing for their clients.

With the Pandemic of 2020 now extending into 2022, the number of instances of assisting customers with reconciling their inventory to their general ledger drastically increased. I believe the reason is due to businesses working with their bankers for credit lines, funding, etc. The point is that there is a need for as much knowledge on this subject as we can share with each other.

Because of the increased demand, I hoped that by writing this blog series, I could provide details for businesses to learn how to reconcile their inventory subledger to the associated general ledger accounts. Additionally, thoughts on putting controls in place to keep the subledger for inventory balanced to the associated general ledger accounts. The tasks of doing this reconciliation, in cases where it has never been done, where the differences have gone off the rails drastically, where there are a large number of transactions and where workload just doesn’t permit the time to dedicate to the reconciliation, all pose real world issues. Partners, consultants and independents are always willing and happy to help but there are many things that you can do for yourself.

In this series there will be separate blogs for each of the following topics.

            Chapter 1 – Concepts – please don’t skip this one even if you are experienced, a quick review can always be helpful.

            Chapter 2 – Direct Posting – this setting is one of the most common causes of being out of balance

            Chapter 3 – Posting Groups – focus is on inventory posting groups

            Chapter 4 – Posting Setup – focus is on general posting setup

            Chapter 5 – The Report – understand which report should be used and why

Chapter 6 – Abnormal Date – process and dates have a dramatic effect

            Chapter 7 – Adjust Cost – why this is necessary

            Chapter 8 – Purchase Orders – how they can have an impact

Future BLOGS: Particular/peculiar situations, Interim Inventory/expected cost, Reconciling WIP

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