Inventory mismatches are one of the most common challenges businesses face while using any ERP system — and Dynamics 365 Business Central is no exception. When your physical stock doesn’t match your system quantities, it affects everything: order fulfillment, costing, reordering, and even customer satisfaction.
The good news? Most inventory mismatches in Business Central come from predictable issues — and with the right steps, they can be identified and fixed quickly.
In this guide, we break down the common causes, how to troubleshoot them, and best practices to prevent mismatches in the future.
What Are Inventory Mismatches?
An inventory mismatch occurs when your Item Ledger Entries (ILE), Warehouse Entries, and physical stock don’t align.
This leads to problems like:
- Wrong quantity on hand
- Incorrect availability for sales
- Purchase or production posting errors
- Incorrect cost calculations
- Delays in order processing
Understanding where the mismatch starts is the first step in solving it.
Common Causes of Inventory Mismatches in Business Central
1. Unposted or Partially Posted Documents
Sometimes purchase receipts, shipment postings, or production journals are left unposted. This causes differences between expected and actual inventory.
Symptoms:
- Item appears as “Expected” but not “On Hand”
- Open warehouse documents stuck in the queue
2. Wrong Posting Dates
Posting with incorrect dates can shift inventory into a different period, causing confusion in reports.
Symptoms:
- Stock suddenly increases or decreases in a closed period
- Costing entries appear in unexpected months
3. Incomplete Warehouse Processes
For businesses using advanced warehousing, mismatches often happen when warehouse documents are not fully executed.
Symptoms:
- Picks/Put-Aways open
- Warehouse entries don’t match Item Ledger Entries
4. Incorrect Item Tracking (Serial/Lot Numbers)
If serial or lot tracking is enabled but not properly assigned, transactions get stuck.
Symptoms:
- Errors during posting
- Items showing availability but not selectable
5. Negative Inventory Allowed
Allowing negative inventory can lead to significant mismatches during backdated postings.
Symptoms:
- Items showing “-5” or “-10” quantity
- Costing issues due to missing entries
6. Data Migration Issues
If the opening balances were not migrated correctly, mismatches continue to appear over time.
Symptoms:
- Quantity and value do not match
- Revaluation required
How to Troubleshoot Inventory Mismatches in Business Central
Below is a step-by-step guide to help you systematically identify and fix mismatches.
Step 1: Run the “Inventory Valuation” and “Inventory to G/L Reconcile” Reports
These reports help identify where the mismatch begins.
Check for:
- Quantity differences
- Cost differences
- Posting date inconsistencies
Step 2: Review Item Ledger Entries (ILE)
Go to:
Item Card → Ledger Entries
Look for:
- Unusual spikes
- Backdated transactions
- Negative quantities
These patterns often reveal exactly where the mismatch started.
Step 3: Check Warehouse Entries
If you use warehousing:
Item Card → Warehouse Entries
Compare these entries with ILE.
If they don’t match, your warehouse processes were not posted properly.
Step 4: Validate Open Warehouse Documents
Go to:
- Warehouse Shipments
- Warehouse Receipts
- Picks & Put-Aways
Post or cancel any documents that are partially processed.
Step 5: Review Item Tracking (If Applicable)
Go to:
Item Tracking Lines
Check for:
- Missing serial numbers
- Lot numbers used twice
- Incomplete assignments
Fixing these often resolves posting errors.
Step 6: Look for Negative Inventory
Run the Negative Inventory report.
If found, correct using:
- Item Journals
- Revaluation Journals
- Adjusting posting dates
Step 7: Adjust Inventory Using Item Journals
If quantities are incorrect, use the Item Journal to adjust stock to the correct value.
Always add a comment describing why the adjustment was made — this helps future audits.
How to Prevent Inventory Mismatches in the Future
1. Enforce Strict Posting Date Policies
Use:
General Ledger Setup → Allow Posting From/To
This prevents accidental backdated or future postings.
2. Close Warehouse Documents Daily
Ensure your team completes:
- Picks
- Put-Aways
- Shipments
- Receipts
This keeps system and physical stock aligned.
3. Conduct Regular Cycle Counts
Daily or weekly cycle counts help detect issues early before they grow.
4. Disable Negative Inventory
Negative inventory causes cascading issues. Disable it to maintain accuracy.
5. Train Staff on Standard Processes
Most mismatches come from inconsistent handling of:
- Posting
- Scanning
- Item tracking
- Warehouse flow
Regular training significantly reduces errors.
6. Use Automated Alerts
Set up workflow alerts for:
- Unposted receipts
- Mismatched warehouse documents
- Negative stock
- Missing tracking lines
This ensures errors are caught immediately.
Final Thoughts
Inventory mismatches in Business Central aren’t just system errors — they’re often process issues. With the right mix of monitoring, preventive controls, and consistent warehousing practices, you can eliminate most mismatches before they impact your operations.
Business Central provides powerful tools to maintain accurate stock, but success depends on disciplined processes and regular checks.
