Inventory

This account reconciliation is an Asset account type and a List reconciliation type. This type of reconciliation allows you to make a list of the amounts that make up the account balance.

If your company has a complex inventory, you would probably have a specialized accounting system for inventory and would use a Subledger Match reconciliation type. If you do significant inventory calculations manually, using an Excel workbook for example, you could still use the Sub-Ledger Match and input the total from your worksheet as the Subledger balance.

This example shows how you can use the List reconciliation type for inventory items. This would probably be most useful for something like a supplies inventory where you have only a few items and the calculations are not complex.

The reconciliation has been Prepared, Approved and Reviewed as noted by the appropriate staff members. There is also a supporting document attached that is the actual inventory count sheet.

Here is one of the Reconciling Items in the inventory. As you can see, the price of $4.00 per foot is not shown in this item's description, but it easily could have been added to be more informative.

This item has an Open Date of 12/31/2010, and the Close Date is blank. When the reconciliation is opened to perform the 1/31/2011 reconciliation, this item will appear. If the item has been recorded in the General Ledger during January, you will be able to enter a Close Date with a January 2011 date, and the item will disappear from the 1/31/2011 reconciliation.

Below is the final report that prints for this account when you click on the Print Report button.

This particular account is reconciled with no Unidentified Difference. You can see that the Comment adds a description of the people responsible for certain inventory tasks. This Comment will only appear on the December 31, 2003 reconciliation.

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