Question:   Why is the Unreconciled Receipt considered as an Asset? 

Answer:   This item represents inventory that has been received but the purchase order has not been reconciled with the purchase order, so we don’t want to put it into inventory until it has been reconciled so this is basically a holding account until it has been reconciled and transferred over to inventory.  We set it up this way to recognize that we have received the items and recognize both the asset and the liability we owe the supplier.