# Infor VISUAL Month-End Inventory Reconciliation Checklist > Source: https://netray.co/tools/visual-month-end-inventory-reconciliation-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A grouped checklist to tie the inventory subledger to the general ledger before closing the month. ## Category cost-finance ## Erp Infor VISUAL ## Audience - Cost accountant - Controller - Inventory manager ## Tool **Kind:** checklist **Groups:** #### Before you start **Items:** **Text:** All receipts for the month are posted with correct dates **Critical:** true **Text:** All shipments for the month are posted and invoiced or accrued **Critical:** true **Text:** Open inventory transactions or batches are cleared **Critical:** true Cycle counts for the period are posted No one is posting into the closing period Previous month reconciliation is signed off #### Raw material and purchased parts **Items:** **Text:** Inventory valuation report totals recorded **Critical:** true Raw material ledger balance recorded **Text:** Difference between report and ledger explained **Critical:** true Negative on-hand quantities reviewed and corrected Receipts not yet invoiced accrual agreed to purchasing Purchase price variance reviewed for unusual items Parts with zero cost but on-hand quantity listed #### Work in process **Items:** **Text:** Open work order WIP report run for period end **Critical:** true **Text:** WIP ledger balance tied to the report **Critical:** true Work orders closed that should be closed Old open work orders with no activity reviewed Labor and overhead applied compared with actual payroll Scrap and rework variances reviewed Material issued above planned quantity investigated #### Finished goods and shipping **Items:** **Text:** Finished goods valuation tied to the ledger **Critical:** true Cost of goods sold agrees to shipped quantities times cost Shipped not invoiced list reviewed Consigned and customer-owned stock excluded from value Standard cost changes in the period documented Obsolete and slow-moving reserve updated #### Sign-off **Items:** **Text:** Reconciliation summary prepared with each variance explained **Critical:** true Adjusting entries reviewed and approved Reports saved as period-end evidence **Text:** Controller sign-off recorded **Critical:** true Period locked in the system **Scoring Note:** Aim for every critical item complete before locking the period. Open non-critical items should have an owner and a date. ## Content **Intro:** Inventory is usually the biggest and messiest balance a manufacturer closes. This checklist walks through the tie-out from subledger to general ledger in an order that surfaces problems early, so the close does not drag on. **Sections:** #### How to use the checklist **Body:** Work through the groups in order. Start with cutoff, because every later number depends on it. Record the report total and the ledger balance for each inventory type, and write down any difference with an explanation. Tick items off as you go and export the result as evidence of the close. **Bullets:** - Run reports after posting stops, with the same cutoff time - Keep the report totals next to the ledger balances - Do not plug differences, explain them #### What the tie-out means **Body:** The perpetual inventory subledger should equal the inventory accounts in the general ledger. When it does not, the cause is usually cutoff timing, manual journal entries that bypassed the subledger, or standard cost changes. Explaining each difference, even small ones, builds trust in the numbers and makes the next close faster. #### Common mistakes **Body:** Teams tolerate small unexplained differences until they pile up. Others reconcile only totals, which hides offsetting errors between raw, work in process and finished goods. Reconcile each category separately. **Bullets:** - Late receipts posted into a closed month - Manual journal entries to inventory accounts - Negative balances left in place **Cta:** If your close relies on manual reconciliation spreadsheets, we can help look at automated tie-out reports. The checklist is free by itself. **Faq:** #### Does this replace my auditor's procedures? **Answer:** No. It is a practical close aid. Your external auditors and internal policy decide what evidence and testing are required for inventory. #### Why reconcile by category? **Answer:** Offsetting errors can hide in a combined total. A raw material overstatement can cancel a work in process understatement. Separate ties expose them. #### What difference is acceptable? **Answer:** Your policy sets the threshold, and it should be small and documented. Any difference above it needs an explanation and, if wrong, a correcting entry. #### How often should I run this? **Answer:** Every month at close. Quarterly and year-end closes usually add physical count results and stricter review. ## Search terms month end inventory reconciliation checklist, inventory to general ledger reconciliation, visual manufacturing month end close, wip reconciliation checklist, inventory close procedure, cost accounting month end checklist, receipts not invoiced reconciliation, inventory variance review --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json