Before You Start
This reconciliation process works best when you have a known good date — a point in the past when your inventory was confirmed to be reconciled — and you're investigating a discrepancy that appeared after that date. If you don't have a known good date to work from, the results may be inconclusive.
Make sure you're using the Deferred Inventory Report in ConnectBooks (not the Inventory Summary Report). Click here to learn the difference.
Also confirm that all transactions for the relevant dates have been exported to QuickBooks:
Bills
Inventory Adjustments
Marketplace Settlements
Invoices (In ConnectStock)
What Affects Inventory Asset?
Four transaction types in ConnectBooks impact the Inventory Asset account:
Transaction | Source |
COGS | Exported eCommerce settlements |
Bills | Inventory purchases |
Inventory Adjustments | Quantity adjustments entered in ConnectStock |
Invoices | Manually created in ConnectStock |
Step 1 — Validate COGS
In QuickBooks, run a P&L by Job/Customer.
In ConnectBooks, run the P&L by Store report using Posted Date.
Compare COGS totals by store.
If they don't match, see Common reasons why COGS don't match.
Step 2 — Check for QuickBooks-Only Activity
Export the Inventory Asset report from QuickBooks as Excel for the relevant month(s).
Filter the Transaction Type column.
Since ConnectBooks only imports Bills and Journal Entries, filter out those two types.
Any remaining transaction types were likely created directly in QuickBooks and may be causing the discrepancy.
Once ruled out, continue to the steps below.
Step 3 — Validate Bills
In the QuickBooks Excel report, a single bill often spans multiple lines.
Select all lines with the same Date and Bill Number — the Excel status bar will show the total.
Then find the matching bill in ConnectBooks under Purchases.
If you don't use landed costs: The bill total should match directly.
If you do use landed costs: Add the bill total plus any freight/tariff costs assigned to it.
Note: If the bill includes a service item, subtract it before comparing.
Step 4 — Validate Inventory Adjustments
Adjustments also appear across multiple lines in QuickBooks.
Select all Journal Entry lines with the same Date and Reference Number.
In ConnectBooks, go to Adjustments and open the matching adjustment to confirm the total.
Tracking Your Work
As you validate, use Excel highlighting to stay organized:
Light grey = validated
Yellow = unmatched or needs follow-up
Also check for bills or adjustments in ConnectBooks that are missing from the QuickBooks report — unlikely if they show "Exported," but worth a look.