Based on the Valuation Method specified in IN Company Parameters (Average Cost, FIFO, LIFO, Standard Cost), adjustments will be generated automatically to correct Inventory GL balances.

Run this form only after all activity has been posted for the month (i.e. purchases, sales, transfers, production, and adjustments). Inventory will be checked to make sure no current batches are open for the specified month; however, PO Receipts, AP Expense, JC, EM, MS, or SM will not be checked.

Each month must be reconciled separately and should be run in consecutive order. It is important that months are not skipped as “beginning” values for the current month are initialized from the “ending” values of the previous month.

If necessary, you can run this process for a month that has been previously reconciled. Generally, this would only be required if additional activity was posted to the month after the initial reconciliation. If you re-reconcile a month, a message displays warning that monthly activity entries exist and that they will be removed. Once the month is reconciled, you will need to rerun the process for each successive month that was previously reconciled.