Inventory valuation report totals include items not yet received physically at the warehouse.
Root Cause:
Items marked as “Shipped” from vendors are recorded via Item Receipt but not yet physically in stock. This is due to automated PO processing or drop-ship processes.
Resolution Steps:
- Use Inventory Status or custom transaction saved searches to separate in-transit from available inventory.
- Exclude Drop Ship or Special Order items where applicable.
- Configure receiving processes to better track transit vs. stock-on-hand.