Reconcile Balances action

When you select Reconcile Balances from the Select Action menu, a current balance adjustment (RECBALADJ) transaction is created.

This process sets the current balance equal to the physical count plus or minus any transactions that occur between the physical count and reconciliation. From a GL account perspective, the Reconcile Balances action is like the Adjust Current Balances action. In the Reconcile Balances window, both the Control GL Account field and the Shrinkage GL Account field display their respective default account codes, as defined for that item and location record.

For example, if you reconcile the current balance of an item in the central storeroom, the Control GL Account field defaults to the inventory control account for that item, in the central storeroom.

The INVCOST table is the primary source of the default codes for the inventory control account and the shrinkage GL account.

The system date and time is used to determine the financial period for the transaction.

When you click OK in the Reconcile Balances window, a reconcile balance adjustment (RECBALADJ) transaction is written to the INVTRANS table.

Important: For LIFO and FIFO costing, if the current balance is increased, you must specify a unit cost and date so that the LIFO and FIFO item has the correct cost basis. If the current balance is decreased, multiple financial transactions might be generated. The transactions correspond to the actual cost that is used from the INVLIFOFIFOCOST table.

Example

Reconcile the current balance of a bearing, currently in inventory at last, standard, and average cost of $22.00. The physical count is 2, but the current balance is initially 3.

Table 1. Source of GL account for reconcile balance
Source GL account	Debit	Credit	Source of GL account
Inventory control account	(4-3) x $22.00 = -$22.00	(4-3) x $22.00 = -$22.00	Shrinkage cost account

If you capitalize the item, the default debit account is the capital GL account, the default credit account is blank, and the line cost is zero.