End of month parts valuation report vs ledger balance process

At end of month once all the parts invoices are processed and the dates are locked, the Parts Valuation Report must be physically printed on the day it is run.

This report is not to be back dated. For example; if you finish your end of month on the 15^th of October, the report must be run and printed at the 15^th of October and the ledger balance will be run at the same time. 

The Parts Valuation Report is presenting to you QOH vs Average cost and so it will never match exactly to the ledger but they should be within a healthy range of each other, for example 5-10K. It is up to each business to decide what a healthy range is. 

The reason this is important is because at end of year your accountant will look at the figure in the Balance Sheet and ask for a report that can substantiate that figure. If your parts QOH X Average cost is not matching the Balance sheet figure, then the difference will need to be written off. 

This report should be ran at end of month and if they start to differ out from each other past your healthy range of variance, investigation should occur to identify any issues, and a journal to write off the variance (if it cannot be identified and fixed) must be done at that point in time as to avoid having large unexplainable variances at end of year. 

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