How to reconcile the inventory value between Zeablue and Xero?
Reconciliation of the inventory/stock value between Zeablue and Xero
Background
The inventory value is reported and calculated differently between Zeablue and Xero:
- Zeablue: as a perpetual inventory management system, the inventory value is evaluated in live, real-time every single time a transaction occurs. The live stock quantities and values mirror actual physical inventory.
- Xero: inventory valuation depends on transaction dates, which determine the cost value assigned through purchase bills and cost of goods sold (COGS).
COGS behaviour
By default, Zeablue sends COGS in a batch dated at the time it is synced to Xero. You can enable a setting that syncs the date of each COGS batch with its corresponding invoice or bill date.
Checking the inventory values between systems
For the most accurate comparison, always compare up to now live values. Backdating invoices or bills alters past carry-forward values in Xero, making historical comparisons unreliable.
What to look out for when the values are different
There are a few things to check if the inventory values are different, for example:
- On Zeablue:
- Perform a "Sync now", to ensure items are synced across and up-to-date
- When using non-diminishing items in purchase orders, check to ensure these have got their own GL mapping instead of the coding to the default inventory GL. Zeablue's inventory levels report excludes non-diminishing items. To do this:
- Go to Integrations > Xero > Settings
- Scroll down to "Xero accounts mapping"
- Click on "View non-diminishing product GL mappings"
- On Xero
- Ensure there are no pending approval items particularly for COGS and inventory supplier bills
- Check if there are any voided or deleted COGS or supplier bills, as these affects the inventory value on Xero
- Check if there are any manual journals made to the inventory GL
Tools to help with the reconciliation
- View un-sent sales invoices:
- Go to Sales menu > Invoices & credits
- Tick "Not sent to Xero yet" at the top
- View un-sent supplier bills:
- Go to Purchases menu > Supplier bills
- Tick "Not sent to Xero yet" at the top
- View the journals sent from Zeablue to Xero for the inventory GL, to do this:
- Go to Integrations > Xero > Sync status
- Click on "Journals sent"
- Enter the inventory GL into "Account code filter"
- Cross-check your records with Xero's inventory transaction list to spot significant value discrepancies or identify transactions missing due to voids and deletions
- Identify any supplier bills that have been pre-created before the PO is receipted and before the landed cost is finalised. Any pre-created bills will be sent to Xero which affects the inventory value there, but as the landed cost has not been finalised, the inventory value won't be affected on Zeablue's inventory levels report. For example:
- When looking at the inventory values for past months by using the "Monthly snaps" function on the inventory levels report, check to see if there are any backdated invoices or bills that have been sent to Xero. For example:
