The amount showing in Inventory KPI may be different from Inventory Valuation Summary Report.
- Inventory Valuation Report only includes transactions which have a linked inventory/assembly items. Other type of item like Discount is excluded. It also excludes transactions that are not linked to an item such as Journal Entries, Bills, Checks and Deposits.
- Inventory KPI is affected by transactions with Inventory Asset and Inventory In-Transit Accounts.
Upon further checking, below are the Enhancement Requests I found related to your concerns.
- Enhancement # 180547 – Home > Dashboard > Key Performance Indicators > Inventory > Amount > Please show a report that will show the total of Inventory KPI Amount (As of now, it only shows the Inventory Valuation Report).
- Enhancement # 93978 – Custom KPI > Create custom KPI based on saved report
As a workaround, you may try to create the following Transaction Search:
1. Lists > Search > Saved Searches > New > Transactions
2. On the Criteria tab, set the following fields:
- Posting = True
- Account = Inventory Asset and Inventory In-Transit Accounts.
3. On Results tab, click Remove All and add the following:
- Date
- Document Number
- Type
- Item
- Amount
- Item Fields: Type
4. Mark Show Total
5. Assign a Title
6. Save & Run
If Inventory Valuation Report shows lesser value, other possible reasons for the discrepancy could be Journal Entries, Bills, Checks and Deposits. These are transactions that are not linked to an item. Thus, these are not included in the report as it only includes transactions that have linked inventory/assembly items.
But for instances where Inventory KPI may be less than the value in the Valuation Report, a possible reason could be the presence of accounts used by your items wherein the Inventory checkbox is not marked. Per Field Level Help of Inventory box – If this will be an Other Current Asset account and you want the balance of this account included in the total balance of the Inventory KPI, then select the Inventory check box.
Transactions that are not linked to an item, such as Journal Entries, Bills, Checks and Deposits, directly using the Inventory account may cause the discrepancy. The said transactions are reflected in the Inventory KPI/Balance Sheet as it hits the GL, but it is not reflected in the Inventory Valuation Report.
We can customize a report, exposing transactions that does not have a direct posting to your items, which may be helpful in reconciling the difference between your Inventory KPI and Inventory Valuation Report.
To customize the report,
1. Navigate to Reports > Financial > Balance Sheet.
2. Click Inventory Account Name
3. View General Ledger Detail Report of the Inventory Account
4. Click Customize button
5. Click Filters tab:
1. Add Fields section: Click Transactions folder
2. Click Item
1. Filter: Select empty
2. Click Done
3. Add Fields section: Click Transactions folder
4. Click Account
1. Filter: Select equal to
2. Click Select Multiple (double downward arrows sign)
3. Click Asset Accounts used in Item records
4. Click Done
6. Rename the Report
7. Click Save
The said report shows all transactions which do not contain an item. These may cause the difference on the values.