Stock and Account Value Comparison

Overview

Below is a business-focused explanation of the report “Stock and Account Value Comparison”, written for operational and finance users of Dafater.

Report: Stock and Account Value Comparison

Module: Stock
Purpose: Inventory valuation and financial reconciliation

1. What Business Information This Report Provides

The Stock and Account Value Comparison report shows a side-by-side comparison between inventory value as per stock records and inventory value as per accounting records.

In simple terms, it answers the key business question:

Does the value of physical stock movements match the value recorded in the financial accounts?

The report highlights: - The total stock value based on stock ledger entries - The corresponding value recorded in stock-related accounts - Any difference between operational stock value and financial book value

This helps businesses ensure that inventory operations and financial accounting are aligned.

2. When and Why to Use This Report

When to Use

Why to Use

3. Key Columns and Their Business Meaning

While column names may vary slightly, the report typically includes:

Item / Item Group

Shows which products or product categories are being evaluated.
Useful for identifying problem areas at item or category level.

Warehouse

Indicates where the stock is physically stored.
Helps detect location-specific discrepancies.

Stock Value (As per Stock Ledger)

Represents the inventory value based on actual stock movements such as receipts, issues, transfers, and adjustments.

Business meaning:
This reflects what operations believe the stock is worth.

Account Value (As per General Ledger)

Represents the inventory value recorded in financial accounts.

Business meaning:
This reflects what finance reports as inventory on the balance sheet.

Difference

Shows the variance between stock value and account value.

Business meaning:
- Zero or near zero → Healthy alignment
- Positive or negative difference → Potential issue requiring investigation

4. Available Filters and Their Business Purpose

Company

Allows analysis for a specific legal entity.
Useful for businesses managing multiple companies.

Date / Posting Date

Limits the report to a specific time period.
Essential for period-end reconciliation.

Warehouse

Focuses the comparison on one or more storage locations.
Helpful when discrepancies are suspected in specific warehouses.

Item or Item Group

Narrows the analysis to certain products or categories.
Useful for high-value or high-risk inventory items.

Account

Filters by specific inventory-related accounts.
Useful for validating account-level accuracy.

5. How to Interpret the Results for Business Decisions

No Difference or Minor Difference

Significant Positive Difference

(Stock value higher than account value) - Stock exists operationally but not fully reflected in accounts - Possible causes: - Missing accounting entries - Incorrect posting dates - Manual stock adjustments without financial impact

Business action:
Investigate unposted or delayed accounting entries.

Significant Negative Difference

(Account value higher than stock value) - Accounts show more inventory than physically tracked - Possible causes: - Stock write-offs not posted - Incorrect valuation rates - Duplicate accounting entries

Business action:
Review stock adjustments, write-offs, and valuation logic.

6. Common Use Cases and Business Scenarios

Month-End Inventory Reconciliation

Finance teams use the report to ensure inventory values are accurate before closing books.

Audit Preparation

Auditors often request proof that stock records reconcile with financial accounts. This report serves as a key control document.

Warehouse or Store Investigation

Used when a specific warehouse shows unexpected stock shortages or excesses.

High-Value Inventory Monitoring

Businesses dealing in expensive or sensitive goods use the report to reduce financial risk.

Post-Adjustment Validation

After bulk adjustments, revaluations, or write-offs, the report confirms whether both stock and accounts reflect the change consistently.

Summary

The Stock and Account Value Comparison report in Dafater is a critical control tool that bridges inventory operations and financial accounting. It helps businesses: - Maintain accurate financial statements
- Detect and resolve inventory valuation issues
- Strengthen internal controls
- Support audits and compliance

Used regularly, this report ensures that what the business physically holds matches what the books report.

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Report Information