December 4 2020
QuickBooks Tip: How To Prevent Negative Inventory
QuickBooks has several useful tools, including a feature which allows users to track the number of inventory on hand. However, one universal problem users come across with this particular feature is an inventory value going negative.
Negative Inventory Issues In QuickBooks Desktop is caused when sales transactions are entered prior to the corresponding purchase transactions are entered therefore the results could be an actual headache.
Potential issues include incorrect cost of goods sold balances, errors on vendor reports, and “out of balance” balance sheets. If any of these issues sound familiar, this is the time to learn more about how you can easily fix or avoid negative inventory altogether.
Fixing negative inventory
When you are with a poor inventory situation, don’t panic. Utilize the following suggestions to help correct it.
While trying to correct negative inventory, take necessary precautions to avoid potential problems. For instance, back up your data and ensure that it it is safe. Recognize that you need to eliminate each occurrence separately. It is impossible to shortcut this remedy. Before you do anything, touch base with your accountant to ensure that the changes you might be making are valid.
You may also read: https://accountinpro.blogspot.com/2020/12/negative-inventory-issues-in-quickbooks.html
Preventing negative inventory
You can avoid this example by only recording the sale of inventory items once you've purchased them and entered the purchases into QuickBooks.
The following guidelines can help with this procedure:
If you want more assistance with negative inventory or just about any other issues, please contact me or any other certainly one of Kaufman Rossin’s QuickBooks ProAdvisors.