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Inventory movements do not (cleanly) flow to the ledger.

With inventory accounting, movements in the inventory module should produce ledger entries, directly or via a journal. A disconnect means the balance sheet is wrong.

Try this first

  1. 1Check whether your package (Exact, AFAS, Twinfield) links inventory to ledger per transaction or via periodic summary, both can work.
  2. 2Set up ledger accounts 'inventory', 'cost of goods sold' and 'inventory variances' and link to article groups.
  3. 3Reconcile monthly: inventory value in the module against ledger balance, a gap usually sits in a missing booking or stocktake correction.
  4. 4Run at least an annual physical stocktake and book differences via 'inventory variances'.
  5. 5Keep purchase invoices and goods receipts linked to inventory movement for accountant and VAT review.

When to bring us in

If inventory drifts structurally from the ledger, we can review the chain from order to ledger.

See also

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