What is the difference between Stock on Hand Xero Reconciliation Report and Historic Stock Valuation Report?

I am looking at the two reports and I'm seeing a discrepancy. What is the difference between the two reports and why do the figures not match?

 

Answer

This is a common question, and it's important to understand how the reports are built in order to see why there might be a discrepancy.

The Stock On Hand Xero Reconciliation report is based on the invoice date whereas the Historic Stock Valuations report is based on the fully dispatched/fully received date.

If your Stock On Hand Xero Reconciliation report is greater than the Historic Stock Valuation report, the most common reason for the discrepancy is that there may be transactions that have been invoiced and dispatched in different months.

To stop this from occurring, remember to invoice goods in the same month that they are dispatched.

Which report should you use? Different reports have different uses.

Different reports have different uses:

Stock on Hand Xero Reconciliation is a reflection of your stock value which you would use to reconcile with your accounting software.

Historic Stock Valuation Report is a reflection of the physical count of stock.

8/28/2017 - Daniel