Inventory Analysis

Applies toFinancial Closing Procedures

AudienceAll users

Last updatedOctober 02, 2025

This report is used to compare Inventory GL Balances with the Invoiced Cost from the Inventory Valuation Report to ensure financial accuracy at month-end.

Under normal circumstances, the Invoiced Cost should always match the total of the Inventory GL Accounts. However, discrepancies may occur due to timing issues, data entry errors, or system anomalies.

Inventory Reconciliation Schedule

• Use the Attached Excel Template

  • Record values from both the GL and the Inventory Valuation Report for the current month and the prior month.

  • Inventory Reconciliation Schedule 05152025.xlsx

• If any differences are found in the prior month, go back one additional month to identify and resolve the root cause.

• Fields to Enter in the Template

  • Inventory GL Balances by account (e.g., Finished Goods, Subassembly, Raw Material)

  • Total from GL

  • Invoiced Cost

  • Expected Cost (manual adjustments)

  • Total from Inventory Valuation Report

  • Difference in Invoiced Cost

• Use the Inventory Analysis Tool to investigate any mismatches.

References

• GF1003 Inventory to GL Reconciliation Report (As Of Date)
• Inventory Reconciliation Tips for Multi-Ledger Setup

Step-by-Step: Conducting Inventory Analysis

Preparation

• Ensure all Inventory GL Accounts used for Finished Goods, Subassemblies, and Raw Materials are correctly marked:

  • Check the Inventory Account checkbox for these GL accounts

  • Do not check this for Work In Process (WIP) accounts (no sub-ledger tracking)

If the Inventory Account checkbox is not editable, modify the GL Account Page Layout to make it visible.

Running Inventory Analysis

• Open the Inventory Analysis tab

• Initialize the table

  • Click Mass Delete All Records

  • Click Run GF Analysis

• Run the Analysis

  • Enter the appropriate Start Date and End Date

  • Start Date = the first month showing discrepancies

  • Ensure the previous month's balances are already in sync before analyzing the current one

  • Click Run Analysis

How It Works

GoldFinch compares entries in the GL Entry table with those in the Cost Entry table, grouped by Document No., and logs any discrepancies in the Inventory Analysis table.

If entries are tied to a Work Order, the comparison is grouped by Work Order No. instead.

Next Steps

• Use the Document No. identified in the Inventory Analysis table to trace and resolve the source of the imbalance.

• Once the root cause is addressed, re-run the reconciliation process to confirm alignment.

---

Article Inventory-Analysis  ·  Last updated October 02, 2025 · GoldFinch ERP Help Center