What is inventory reconciliation in Business Central?

It's the process of confirming that the value of inventory recorded in the inventory subledger (item ledger entries and value entries) matches the balance of the corresponding inventory accounts in the general ledger, as of the same date.

How often should inventory be reconciled in Business Central?

Monthly, as part of period close, is standard practice. Auditors typically expect evidence of a regular reconciliation cadence, not just a year-end check.

Which report should I use to reconcile inventory in Business Central?

Start with the Inventory - G/L Reconciliation matrix page for its built-in discrepancy explanations and drill-down. The Inventory Valuation report and Inventory to G/L Reconcile report remain useful for period-end documentation and for companies with separate Inventory and Inventory (Interim) G/L accounts.

Why doesn't my inventory match the general ledger in Business Central?

The most common causes are: a manual journal entry posted directly to the inventory account, a purchase or sales document line posted to a G/L account instead of an item, or an item's inventory posting group being changed after transactions were already posted.

What does Automatic Cost Posting do?

When enabled, Business Central posts inventory, adjustment, and COGS values to the general ledger in real time as transactions are processed, instead of waiting for a scheduled batch job. It can be turned off for performance reasons on high-volume systems, but the Post Inventory Cost to G/L batch job must then be run on a schedule.

Why is my WIP account not reconciling?

A WIP difference is often expected, not an error. It reflects open production orders and unreceived purchase invoices, and will naturally go to zero only once all related production and purchasing activity is completed and invoiced. Use the Inventory - G/L Reconciliation matrix or the Production WIP report to confirm the difference is consistent with open activity rather than an actual discrepancy.

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