I have a BV client who says his G/L inventory account is WAY off to the value of his actual inventory, which is mostly raw materials.

His inventory value by Sales Dept, report shows an Inventory value of around $1.6 mil, whereas GL account 11300 (inventory on hand) is around $55,000.

So I thought i would watch him receive a PO, under my assumption that the GL Inventory account would increase when closing out a PO, since you are receiving inventory. I turned off Autopost just to watch any GL activity. We received and closed out 2 POs. No GL transaction popped up from having Autopost off, and the GL account did not change even one penny after receiving some items on a PO.

Am I looking in the wrong place? When should the GL inventory account increase? I see on a number of transactions on the Special Accounts setup, activity is being sent to an inventory expense account.

Any tips would be appreciated to clear up his GL problem.

thanks