Inventory Accrual Out of Balance

Owned by Stephen Juliano
Mar 16, 2022
1 min read

Overview

When Inventory Accrual account has a Red Light on the Subledger Status Screen, you will need to isolate the issue and make a Journal Entry to correct.

Example

At the highest level, this indicates you doubled up on expenses instead of hitting the liability account. In this case, the correcting entry would be to Debit Accrued Payables and Credit Cost of Goods sold.

Finding the Issue

Finding out why should be easy. Check the following:

  1. GL QUERY screen for February on the accrued payables or inventory accrual account

    1. Look for entries that did NOT come from either the INV module or the APY module.

      1. This could be an incorrect setup somewhere or a journal entry

  2. Use of the INVOICE RECEIPTS screen under PUR>Receiving>Invoice Receipts

    1. If this screen is used, items come off the report reducing the report balance without reducing GL balance

      1. find out if someone cleaned up your Uninvoiced Receipts report.