I'm trying to find the difference between my balance sheet inventory asset vs. inventory valuation summary report. I ran them for September and have a 2% discrepancy or a couple hundred thousand. What should I be looking at to help understand the difference?

Posting transactions that were posted directly to the asset without using items such as JEs, etc.

Yes @Luis is right. Someone posted a transaction directly against the inventory asset account without an Item reference. Like a JE. I’ve also seen many people choose to enter Vendor bills with the inventory asset account on the expenses line but no items Usually happens during implementation. Really not a good idea in my opinion