Balancing the Acctivate Inventory Valuation and the QuickBooks Inventory Asset Account

If you find that QuickBooks and Acctivate reporting different numbers in these locations, take these steps.

The Inventory Valuation report only includes inventory transactions entered in Acctivate. The Inventory Asset account(s) in QuickBooks only includes transactions that have been synchronized.

The valuation report should balance to QuickBooks immediately after a successful synchronization. If it is not in balanced, use the following procedures to identify any discrepancies.

• Run a Synchronization (manual sync if using QuickBooks Online) and ensure there are NO errors in the Journal sync
  • Acctivate posts all updates to the Inventory Asset account as Journal Entries.
  • Any exceptions in the Journal synchronization will likely cause discrepancies in the QuickBooks asset account.
• Look for any non-Acctivate transactions in the Inventory Asset account.
  • For QuickBooks Online:
    1. Select "Accounting" -> "Chart of Accounts"
    2. Locate the Inventory Asset Account, and select the "View Register" action.
    3. Scroll up through the list until you find any transaction without Acctivate in the Memo and remove them.

• • For QuickBooks Desktop:
    1. Open the Chart of Accounts in QuickBooks
    2. Right-click on the Inventory Asset account and Use Register
    3. Scroll up through the list until you find any transaction without Acctivate in the Memo and remove them.

 Identify Discrepancies

• New Acctivate company created with non-matching inventory asset value. Skip to Resolve any discrepancies section. The most common reasons for a discrepancy are as follows:
  • Inventory value in QuickBooks created with general journal entries rather than linked to the item list. The Acctivate create company process deactivates items and adjusts the quantity down to zero. When not tracking inventory details in QuickBooks in the item list, the offsetting entry to the initial balance import in Acctivate will need to be manually created in QuickBooks.
  • Importing inventory initial balances via a spreadsheet rather than importing from QuickBooks. Typically, this results in a discrepancy due to the users either updating to correct or entering invalid unit costs directly, as well as updating quantity on hand in the spreadsheet without matching updates in QuickBooks.
  • Moving to a new cost method. The most common situation would be going from FIFO to Average.

• Outside of onboarding and beginning date unknown: Print the Inventory Summary Journal report in Acctivate to review entries synchronized to QuickBooks.
  • This report is located in the Transactions folder under Inventory Reports
  • Use 1/1/2000 as the Beginning Date and 12/31/2099 as the Ending Date to include all journal entries or you can use the start and end date of the period you need to compare.
    • NOTE: Older versions of Acctivate may not include the beginning inventory value in the Inventory Summary Journal report. The amount of your beginning inventory value should be the difference between this report and the Inventory Valuation report.
  • Use the instructions from the section above to Use Register for the Inventory Asset account comparison in QuickBooks.
  • Compare the balances at the end of each period in the Inventory Summary Journal report and the Register in QuickBooks

Resolve any discrepancies:

• Use an adjusting journal entry, if the same discrepancy amount has always existed or exact discrepancy amount known.
• Delete any duplicate journals (with same number) in QuickBooks with the same Reference Number. The correct entry will be re-created automatically by the next Synchronization with QuickBooks.
• Delete any journal entries where the amount doesn’t match the Summary Journal report. The entry should be re-created with the correct amount by the next synchronization.

Other possibilities to consider

Please let us know if any of the following conditions might apply and we can help you research these problems:

1. Have you removed any products from a warehouse that had inventory on that date?
2. Have you changed any products from Inventoried to Non-inventoried?