This report reconciles the balances of your inventory asset accounts with the values of the associated inventoried items as of a particular date. (Inventoried items are items for which you’ve selected
I Inventory This Item in the Item Information window.)
For example, if you record your inventory account on a general journal entry transaction, your inventory account will reflect the debit or credit amount, and so the Account Balance on this report will reflect the amount. The general journal entry, though, won’t be included in the transaction list on this report; only transactions that include inventoried items are included. The Inventory Value on this report won’t include the amount. Therefore, an out of balance amount will display.
