The valuation shows CRC 212,500 while the Inventory ledger account shows CRC 217,500. Posting CRC 5,000 would make them agree, but it would not explain the difference. Inventory reconciliation follows quantities and costs to the movements that recognized them. Establish what entered stock, what left through sales and what left for another reason. A physical shortage is not automatically cost of sales. A purchase awaiting acceptance is not a recorded receipt. Start by identifying the records and date being compared, rather than treating the difference as an amount that must be removed from one report.
Agree the same scope and cutoff
Choose company, currency, locations and cutoff moment. Comparing current stock with a ledger from two weeks earlier can create a difference even when both are correct. Tario's valuation reads inventory balances and supports exporting the table; do not treat that current export as an automatic reconstruction of a past date. Retain cutoff evidence for closing work and reconcile later movements where needed. Also check whether the ledger account includes inventory classes outside the item table. Scope must agree before values can be compared meaningfully. A broad ledger total and a single warehouse export answer different questions.
Distinguish on-hand, available and reserved quantities. A reservation reduces availability but does not mean goods have physically left or their entire value must leave the asset account. Review on-hand quantity and the cost origin for each balance. Analyze other-currency amounts separately instead of adding their nominal figures to CRC balances. These scope checks avoid unnecessary adjustments and help assign a concrete cause to real differences. For example, a missing receipt is different from a manual ledger entry that changed the account without changing stock. The appropriate correction depends on which record is actually wrong.
Worked example: receipt, sale and damaged units
Begin with 120 spare parts at CRC 1,500, worth CRC 180,000. Receive eighty units at CRC 2,000, adding CRC 160,000. The resulting two hundred units total CRC 340,000 with a moving average of CRC 1,700. Sell seventy units at a cost of CRC 119,000, leaving 130 worth CRC 221,000. A count identifies five damaged units that the accountant decides to remove at CRC 8,500. The final balance is 125 units worth CRC 212,500. Taxes, freight and rounding are omitted to isolate the reconciliation. Every reduction should still retain its own cause and evidence.
- Opening balance: 120 units, CRC 180,000.
- Receipt: 80 units, CRC 160,000; new average CRC 1,700.
- Sales issue: 70 units, CRC 119,000 cost.
- Damage issue: 5 units, CRC 8,500, treated separately in this example.
- Ending quantity: 120 + 80 − 70 − 5 = 125 units.
- Ending value: CRC 180,000 + 160,000 − 119,000 − 8,500 = CRC 212,500.
Keep the cause visible in the ledger bridge
Under the policy chosen for this illustration, the sale debits Cost of Sales and credits Inventory by CRC 119,000. Damage is recorded against the loss account selected by the accountant for CRC 8,500. This does not assume that Tario automatically assigns that classification to any physical adjustment. Keep the two reductions separate. The official IAS 2 summary, for entities applying it, associates expense recognition for sold inventory with the related revenue period and also addresses inventory losses. It does not establish your tax treatment or how your business presents this particular damage loss in its reports.
Selling seventy units at CRC 2,600 produces CRC 182,000 revenue and CRC 63,000 margin before the damage loss. If the company presents that loss separately, its additional CRC 8,500 effect remains visible. Agree the classification before comparing monthly margins. Combining all reductions under 'monthly cost' would obscure whether the commercial margin changed or the warehouse lost goods. The arithmetic bridge remains the same, but the interpretation differs. Retain the count report and the accountant's decision so the loss cannot be mistaken later for another customer sale or an undocumented inventory transfer.
Follow the document postings in Tario
With confirmed inventory lines and the relevant configuration, an accepted bill generates a receipt and reclassification from expense to Inventory. A sales invoice containing inventory products generates an issue and a Cost of Sales against Inventory posting using the cost recorded for that issue. Check configured accounts, item and location. An unconfirmed line does not have the same result. Do not assume every imported expense increases stock or every service invoice creates goods cost. Inspect the specific movement and journal. This makes the product's automation testable without implying it resolves missing assignments or accounting policy decisions by itself.
Capitalization and cost journals generated by this flow use the process posting date, which can differ from the source document date when recording happens late. For a cutoff review, inspect document references and both movement and ledger dates. Filtering only by the commercial invoice date can make a recorded cost appear missing. Retain references to the receipt, issue and journals. For returns or voids, inspect reversals and their retained costs instead of recalculating an earlier issue at today's average. The current cost is not a substitute for the cost evidence of the original movement.
Investigate the CRC 5,000 difference
Suppose the migrated opening balance includes an old CRC 5,000 Inventory adjustment described as 'round close', with no receipt or other explanation. That entry explains the CRC 217,500 ledger balance, but the accountant must assess its origin and authorize correction. Other cases may involve an unaccepted purchase, missing item assignment, another location or movements outside the cutoff. Group differences by cause and retain references and owners. Finish when the opening balance plus receipts less issues and losses matches the ending balance within the agreed scope. Preserve the export, ledger details and reviewed bridge, and check quantities too: a wrong cost can compensate for a physical error.