QUICKBOOKS NEGATIVE INVENTORY QUICKBOOKS NEGATIVE INVENTORY PROBLEM AND SOLUTIONS
This article explains Quickbooks negative inventory - its causes and effects on your company file. It also outlines steps required to fix issues arising from negative inventory.
When you sell items that you have entered into your company file? 1. You purchase items using the Items Tab on an item receipt, bill, check or a credit card charge, debiting inventory and crediting A/P, Cash, or Credit Card Payable. 2. You sell items on invoices or on sales receipts, but never more items than you have on hand. 3. The sales transaction actually records two transactions: a. The Sales/Receivable transaction, debiting A/R and crediting Sales b. The Inventory/COGS transaction, crediting Inventory and debiting COGS. 4. You run P&L and expense reports which show the invoices and sales receipts because they record both the income and the expenses. 5. You run B/S reports which show item receipts, bills, checks and credit card charges because they record increases in inventory and they show invoices and sales receipts because they record the decreases in inventory.