Source truth: - Accounts - Journal Entries - Posting and Reversal

Inventory

Inventory documentation explains how stock interacts with accounting.

• Track inventory movement with source documents.
• Post entries that connect inventory changes to cost and revenue accounts.
• Keep stock valuations consistent with accounting policies.

Reconciliation

Inventory valuation should reconcile to the ledger.

The review should make clear:

• the as-of date or target period;
• the valuation basis;
• the ledger balance being compared;
• whether a variance remains;
• whether missing cost, negative inventory, or valuation mismatch needs review.

Inventory differences may occur, but they should be visible, explainable, and supported by evidence.

Inventory accounting posts through the normal posting path. Inventory review should not bypass journal entry, period, evidence, or close controls.