Reporting Costs and Reconciling with the General Ledger

At the end of accounting periods, monthly, yearly or other, a sequence of cost control and auditing tasks must be performed to report a correct and balanced inventory value to the finance department. Apart from the posting routine that transfers the individual item value entries to dedicated general ledger accounts, several reports, tracing functions, and a special reconciliation tool are available to the auditor or controller responsible for this business-critical work.

The following table describes a sequence of tasks, with links to the topics that describe them.

To	See
View the inventory value of selected items, including information about the quantities and values of increases and decreases in inventory over a selected period.	Inventory Valuation report
View the inventory value of selected production orders in your WIP (work in process) inventory, such as the quantities and values of consumption, capacity usage, and output in ongoing production orders.	Inventory Valuation - WIP report
View the inventory value of selected items, including their actual and expected cost on the date specified.	Invt. Valuation - Cost Spec. report
Use a report to analyze the reasons for cost variances or to gain insight into the cost shares of sold items (COGS).	Cost Shares Breakdown report
Periodically post the value entries of item transactions from the inventory ledger to the related G/L accounts to reconcile the two ledgers.	Reconcile Inventory Costs with the General Ledger
Use one page to audit the reconciliation between the inventory ledger and the general ledger.	Reconcile Inventory Costs with the General Ledger
Determine the WIP amount that needs to be posted to balance sheet accounts for period-end reporting.	Monitor Job Progress and Performance

Reporting Costs and Reconciling with the General Ledger

See Also