The reconciliation sequence (follow this order)

Formula refresher:
Opening Inventory + Purchases - COGS = Closing Inventory

Step 0. Establish your starting point

Pick a period where COGS and Inventory were aligned (e.g., prior year-end). Document it.

Step 1. Sync Cin7 → QBO and clear sync errors

Run the sync. Fix errors in Cin7 Core, not in QBO. Sync again.

Step 2. Purchases recon (focus on inventory suppliers)

1. In QBO, scan Inventory & Direct Cost accounts for manual journals. Move any legitimate one-offs to a separate “Manual Adjustments – Inventory” account.

2. Compare Cin7 Purchase Invoices & Credits vs QBO Purchases/Payables, supplier by supplier, for the period.

3. Investigate variances from partial receipts and invoice/PO unit cost differences. Remember: once a supplier invoice arrives, Cin7 may re-value stock to the invoice cost (it will reverse earlier entries and repost—only possible if your QBO period isn’t locked).

Step 3. Sales recon

1. In QBO, remove manual entries from Sales accounts (raise those sales properly in Cin7 so stock moves).

2. Compare Cin7 Sales Invoices & Credits vs QBO P&L Sales. Large gaps? Drill down invoice-level in Cin7; timing and discounts are typical drivers.

3. Sales P&L comparison paths:

   • QBO → Standard Reports → Profit & Loss

   • Cin7 Core → Financial Reports → Profit & Loss

Step 4. COGS recon

1. In QBO, isolate COGS entries that are not system-generated. Park legitimate one-offs in a separate account.

2. Compare Cin7 COGS/stock movement reports to QBO COGS. Use Cin7’s Financial Transactions filtered to COGS-related accounts; in QBO, use Transaction Detail by Account to pinpoint culprits (stock adjustments, write-offs, stocktakes, etc.).

3. Purchases comparison caution: QBO’s Purchase List includes non-inventory buys; exclude these in your variance analysis to keep it apples-to-apples.

Step 5. Inventory on hand recon (the finale)

Build a comparable Cin7 figure to match QBO’s balance sheet:

1. Start with Cin7 Inventory Movement Summary → Stock on Hand at period end.

2. Add the cumulative accrual difference from Financial Transactions vs Stock on Hand Difference (open POs, GRNI/GINR that explain timing).

3. Compare to the sum of all Inventory Asset accounts in QBO (raw materials, finished goods, GRNI/GINR, etc.). Investigate remaining differences.

4. If you need an adjustment, do it at year-end, post to a separate Inventory/COGS adjustment account (not your system COGS), and cap it at 2% of inventory value—bigger = process issue to fix, not a journal to book.

5. Run these two Cin7 reports:

   • Inventory Movement Summary (stock on hand value at date)

   • Financial Transactions vs Stock on Hand Difference (cumulative discrepancies; filter to relevant open POs you truly expect to receive)

     Then compare [Stock on Hand + Cumulative Difference] to the sum of all Inventory Asset accounts in QBO. Treat the difference as items to investigate; only post an adjustment (ideally year-end) once approved. Remember: The Cin7 Financial Transactions vs Stock on Hand Difference report is cumulative—filter carefully to isolate the reconciliation period; include only genuinely open/expected POs.

Your monthly close checklist (90-minute cadence)

• Sync Cin7 → QBO, clear errors, confirm lock dates align

• Scan for manual journals in Sales, COGS, Inventory; reclass or correct in Cin7

• Purchases: Cin7 vs QBO by supplier; resolve partials and cost mismatches

• Sales: Cin7 vs QBO P&L; fix any “orphan” QBO invoices

• COGS: Cin7 financial transactions vs QBO COGS detail

• Inventory: Stock on Hand + accrual difference = QBO Inventory Assets (sum)

• Document variances, decisions, and adjustments; file supporting reports

Pro tips from the trenches

• Keep QBO unlocked back to your oldest open PO so Cin7 can finalize valuation.

• Don’t “force match” with manual journals — fix the source transaction and resync.

• Consolidated sales? Do forensic work in Cin7; QBO will look clean by design.

• Train your team on closing POs promptly — open, partially received POs are the #1 reason Inventory on Hand in QBO lags Cin7.

Who this helps most

Owner-led manufacturers, wholesalers, and blended D2C/B2B brands at $1M–$50M+ revenue who need reliable inventory visibility and finance clarity — without moving to heavyweight ERP.

This article addresses “Bottom-of-Funnel” needs: concrete how-tos, checklists, and optimization steps (not just theory), and ties directly to implementation and support outcomes.

Fiskal positions as your Integrated Financial Operations Partner — combining ERP know-how with finance leadership to deliver accurate reporting and scalable processes.

FAQs: Cin7 Core ⇄ QBO

How often will Cin7’s Stock on Hand differ from QBO’s Inventory on Hand?
More often than most teams expect — typically due to open/partial POs and accrual timing (GRNI/GINR). Keep POs tidy and ensure invoice/receipt timing is understood and documented.

Do lock dates sync between Cin7 and QBO?
No. You must set and maintain them separately. If QBO is locked where Cin7 needs to post valuation corrections, you’ll see lock-date sync errors.

Monthly vs quarterly reconciliation — what’s best?
Monthly. Volume magnifies tiny issues; monthly cadence reduces detective work and corrects process gaps faster.

Can I post a journal to “fix” COGS at month-end?
Avoid it. Fix the underlying movement in Cin7 and resync. If a true year-end adjustment is needed, keep it separate from system COGS and under 2% of inventory value.