Negative inventory encounters when you enter the sales transactions before filling interrelated purchase transactions. This is not good in QuickBooks because of certain issues like inaccurate vendor reports, cash-related balance sheet due balance, incorrect profit and COGS amounts, an overflow error, etc. This article covers concepts about the purchase of negative inventory items that are not in stock.
- 1 How to Resolve Negative Inventory Issues in QuickBooks Desktop:
Monitor Negative Inventory:
It represents a balance sheet however mainly it displays IVD i.e. Inventory Valuation Detail report.
Execute the IVD report:
Inventory Valuation Detail is used in QuickBooks to calculate the negative inventory extent. There appear negative numbers in the column named Quantity on Hand (QOH)
Steps to execute the above-written report:
- Choose Reports located in a menu
- Click on inventory and then hit on inventory valuation
- Discover drop-down which says Dates and tick all
- Sort entire negative amounts occurrence in the On Hand column
Elaborate the Negative Item listing Report:
Below are the steps:
- Locate Reports menu
- Choose Inventory then click on Negative Item Listing
In case you are not implementing Enterprise 2014, QuickBooks Premier Independent advanced then Inventory Center is there.
Here are the steps:
- Navigate Vendors menu
- Choose Inventory Activities and then click on inventory center
- Go to the left corner of the displaying window to modify the Active Inventory filters to Assembly to QOH <=0.
How to Resolve Negative Inventory Issues in QuickBooks Desktop:
Set the transaction dates in such a manner that bills are dated.
Here are the instructions:
- Discover menu and click on Reports
- Navigate inventory and then click on Inventory Valuation Detail
- Select the drop-down arrow named Dates and tick All
- Scroll down the report to each item displaying a negative amount written in On hand column
- Perform the bills setting with accurate date
- Repeat instructions 3 and 4 with occurrences of a negative quantity
Points that need to consider before troubleshooting:
- Backup company files without conflict the past backups. Ensure that you have saved backup in a safe folder
- A costly negative inventory is a complex and risky task it is a better option, to begin with, a new data file
When the inventory reports are not accurate i.e. sometimes the average cost is missing users can easily view the correct values through convincing that recent dated transactions are credit card, set on hand Qty/value, check, bill, etc.
Below are the steps:
- Locate reports menu and then click on inventory
- Hit on inventory Valuation summary
- QuickZoom and perform the double item displaying inaccurate values. The entire details of the transaction related to the item will appear.
- View the initial bill displayed to run the bills window
- Modify the bill date to prior than the starting invoice appear on the report
- Hit on Save & close if you want to record the bill with a recent date
- Verify the incorrect item and modify it.
When inventory items are sold without any purchase record:
This involves you have not entered bills through inventory items. When they are entered with accounts, thus, edit the bills; modify the entries from the Expenses option to the item.
Enter Purchase before Entering Sales:
- Perform transaction dates settings
- Locate menu bar, click on reports then select inventory and after that Inventory valuable detail
- Choose the drop-down named Dates and then hit on All
- Scroll down the reports listed with a negative amount
- Alter the bill’s date
- Save it
Tips to prevent negative inventory concerns:
- If you want to avoid negative inventory it is suggested that you never try to sell inventory items unless you have purchased that item.
- Set up entire inventory items with an opening balance
- Implement Sales orders or estimates to fill sales associated with inventory
- Make use of pending invoice while entering sales.
Want to explore more?
It is expected that through the above article you have learned How to fix negative inventory issues in QuickBooks Desktop. Apart from this in case you want to know further information regarding the same or want any assistance on QuickBooks error call the QuickBooks customer helpdesk toll-free number. Reach the polite and professional team having experience in the same domain. There is also an email option available or do a live chat for a better resolution on time.