Inventory valuation report by sub inventory doesn't match GL balance.

Hello all,

Our business user has a concern that GL balance is not matching the Inventory Valuation report.There are no manual journal entries, the source is all from Inventory. Balance in inventory valuation report should equal the GL Balance, however, the difference exists between two.

We use average cost type as per the user guide definition in cost management if we run this report using either the Frozen or Average cost type, depending on the costing method, then the subinventories (stock) and intransit items are valued at current frozen standard or average costs.On the other hand, the amount of journal transferred to GL has the latest average cost at that time.