Before you perform inventory close, we recommend completing the following tasks.

1. Validate that the inventory model assigned to the item on the Inventory modeltab of the Inventory model groupsform is accurate. Inventory close will settle transactions to each other based on the current inventory valuation method assigned to the item.

2. View or print the Open quantityreport by clicking Inventory management> Periodic> Closing and adjustment> Close procedure> 1. Check open quantities. This report will print a list of inventory transactions that will remain open after the inventory close is performed.

   For example, you have an item that includes the following transactions:

   • Inventory physical receipt for a quantity of 10

   • Inventory financial issue for a quantity of 3

   In this case, the report will show an open quantity of 3 since this financial issue cannot be settled to any transactions.

   The Open quantityreport also includes a Show receiptsoption that lets you view all the physical receipts posted for an item and all the open quantities that will remain after an inventory close for the date specified.

3. Print or view the Investigation of cost price for receiptsreport by clicking Inventory management> Periodic> Closing and adjustment > 2. Check cost prices. This report allows you to enter a maximum deviation percentage. Items that appear on this report will exceed the maximum deviation percentage. The deviation is based off the item cost price, item or median cost price, or median.

   For example:

   • An item contains a cost price of USD 5.00. When a purchase order invoice was posted for this item, the cost price entered was USD 15.00.

   • When printing this report the maximum deviation percentage was set to be 30% and to use the item cost price as the base. This purchase order would appear on the report since the cost of the item posted, USD 15.00 is more than 30% greater than the item cost price, USD 5.00.