Where is there a variance between inventory valuation and balance sheet?

AI generated answer (using internal Slack threads):

The variance between inventory valuation and balance sheet can occur due to several reasons. One of the common reasons is when transactions are posted directly to the inventory asset account without using items such as Journal Entries (JEs). This usually happens during implementation and is not considered a good practice. Another reason could be due to adjustments made to the inventory account via Journal Entry. These adjustments do not impact the product valuation and hence, won't be reflected on the Stock Ledger. If a discrepancy is found in a closed period, it cannot be changed. The options are to either reopen the period, delete the journal, and create an Inventory Adjustment Worksheet, increasing the inventory valuation by SKU (if it's not lot numbered), or keep the difference for that period and create an Inventory Adjustment Worksheet in the current period and a reversal journal. Inventory adjustments can also impact the balance sheet as inventory is booked through Other Current Asset Accounts. Therefore, any adjustments made will reflect on the balance sheet. You should be able to assign any account on the inventory adjustment (which will be the Debit), but the Credit will go to the Asset account on the item record. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******