General ledger doesn’t correspond stock summary

how to check and how to adjust

Step 1: How to Check

• Check the stock summary report at the end of the period should not show negative quantity and the negative value the cost for closing balance.
• The cause negative value is backdating of transactions (Goods issue, Goods receipt)
• The backdating transaction will update stock card but not cost in journal entry at the validation date
• If negative Qty and Value go to adjust the stock count for that product and for that period.

Step 2: How to adjust

• Run the balance sheet for that period and export inventory accounts.
• Compare inventory account balance with the stock summary balance.
• If there are differences adjust by creating a journal entry for that period the difference should go to the cost of goods sold account / inventory loss.
• If the stock summary is less than Inventory Account the inventory account has to go to adjust on the credit side.
• If the stock summary is more then inventory account adjusts inventory account in debit side.
• The date of journal entry for adjustment should be the end of that period.

Step 3: How to verify

• After adjusting, verify again by running the balance sheet for that period and compare the inventory account with the stock summary report. The difference should be zero.