Quickbooks Negative Quantity on Hand (QOH) Repair

 

Quickbooks Negative Inventory is caused when sales transactions are entered before entering the corresponding purchase transactions, i.e., you sell inventory that you do not have in stock. 


 

Why do files have Negative Inventory?

Basically, you are entering an invoice transaction before entering a transaction to add stock such as a bill, item recipt, etc.

  • The basic reason for Negative QOH is inventory control takes time and effort. Also, a lot of businesses are online/drop-ship and it is normal to sell items before receiving them.
  • Another reason is that Non-Inventory items are marked as Inventory items in Quickbooks. If this is the case, you will need to convert the inventory items back to Non-Inventory items. Contact us for details.

What are the effects of Negative Inventory?

Negative Inventory can cause on or more of the issues listed below. Continued use of data files with negative inventory will render them unusable at some point.

  • Inventory Items have Incorrect Cost
  • Profit and Loss & Cost of Goods Sold (COGS) amounts will be incorrect
  • Cash-basis Balance Sheet out of balance
  • Balance Sheet inventory amount is incorrect
  • Errors in A/P reports
  • Bills for inventory purchases showing up on income and expense reports
  • Inventory Assemblies show incorrect COGS on job costing reports
  • Recurring data damage

How to find if your file has Negative Inventory?

Inventory Valuation Detail (IVD) report

The Inventory Valuation Detail Repaort is the ONLY report that you can use to check if your data file has negative inventory. Negative inventory shows with negative numbers in the Quantity on Hand (QOH) column.

How to run the IVD?

  1. Go to the Reports menu.
  2. Select Inventory then click Inventory Valuation. 
     

How to Fix Negative Inventory?

Essentially, do not sell inventory items until you have purchased them and entered the purchases into QuickBooks.

If your file has multiple instances of negative inventory, we offer a service to repair the data file and remove all instances of negative QOH. Please contact us to learn more about the service.

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