How to Fix Negative Inventory in Quickbooks Premier Manufacturing Desktop? [Complete Guide]

Quickbooks negative inventory: featured image

QuickBooks comes up with some high-end features to make accounting and financing easier for the users. Because of users’ features, Quickbooks is now used in almost every mid-sized and small-sized company. Furthermore, Intuit has managed to improve the product every then and now. Despite their efforts, users can still face some issues while using the QuickBooks application. One such QuickBooks error is Quickbooks negative inventory. Unlike other common errors, it is not because of problems in the software, but this usually happens because customers join the sale prior to making any transactions.

The error may be tricky to resolve, but do not worry about it. We are here to help you with it. This troubleshooting guide will explain to you how to fix negative inventory in Quickbooks.

How to fix negative inventory in Quickbooks

Know More about Quickbooks Negative Inventory

Before we explain to you how to fix negative inventory in Quickbooks, you need to know what the issue is. As the name suggests, Quickbooks negative inventory refers to a situation where the user is making a sales transaction for the product not present in the stock. This usually happens when a user enters the sales transaction before the actual purchase is made. Though the issue may not seem very complex, it can be chaotic and confuse many people.

Detect Negative Inventory in QuickBooks

If you want to check if there is a negative inventory, all you need is the IVD reports. To check the negative inventory, you can look for the amount with a minus sign in the amount available column. To access IVD, follow the steps mentioned below.

  • In the Quickbooks window, go to the reports option and then choose the inventory option.

negative inventory asset in quickbooks online: IVD reports

  • You will then have to click on the inventory valuation option.

Other than this, you can also access the inventory center for Quickbooks version 2014 or older. But,  there is no advanced inventory feature in these versions. To use the inventory center, follow the steps mentioned below.

  • First, you will have to go to the supplier’s menu.
  • Under this, click on inventory activities and then choose the inventory center option.
  • You will now have to modify the filter. You will have to go to the left-hand side of the inventory center slot and move it from the active to QOH=Zero option.

Potential Causes of Quickbooks Negative Inventory Issue

To know how to fix negative inventory assets in Quickbooks online, you must understand why you face the issue. Here is a complete list of potential reasons for which you are facing the Quickbooks negative inventory issue.

  • You have created an item but have not assigned an item price to it.
  • There is no information available for the expected price, and Quickbooks has assigned the item a median price of 0.00$.
  • You have not purchased the item and still sold it.
  • In case you have sold an item and have not recorded the purchase.
  • In case you have entered a purchase and have not entered a sales transaction.

Methods to Fix Quickbooks Negative Inventory

Negative inventory in Quickbooks may seem a minor issue but can lead to a lot of chaos. Therefore, you need to resolve it as soon as possible. Below we have listed some methods which can help you resolve Negative inventory in Quickbooks.

Quickbooks online inventory: methods

Situation 1: The User has Entered Sales Transaction Prior to Entering Purchase Transaction

In this situation, if you have entered the bill items and have not entered inventory, you will have to modify the bill and change the expenses. Because of this, m there are chances that inventory will also change. So, if you do not know how to get rid of the issue, we suggest you contact the technical experts.

Situation 2: In Case of Sale is Your Transaction

  • To start with, open the Quickbooks application on your system and then choose the reports tab.
  • You will then have to click on the inventory option and then choose the inventory valuation summary option.
  • Next, you need to employ Qucikzoom to check the valuation of a particular item.
  • Now, you need to modify the date on the bill with the date earlier than the invoice date.
  • Save that bill by clicking on the save and close tab.
  • When done, follow the steps mentioned above for each item you are facing issues with.

Situation 3: In Case You Have Made Purchase Entry Before Sales Entry

  • For this, open Quickbooks and then go to the reports option.
  • You need to choose the inventory option.
  • From the tabs appearing on the screen, choose the option for inventory valuation detail.
  • Choose the dates option and also, make sure to choose all.
  • Look for the item for which the amount is negative.

Methods to Avoid QuickbooksNegative Inventory

Now, to avoid the Quickbooks negative inventory situation, you can use some basic methods. Below we have listed and explained all the methods that you can use to avoid Quickbooks Negative inventory issues. Make sure to follow all the steps in the same way as mentioned.

Quickbooks negative inventory Avoid it in easy steps

Method 1: Open Balance Set-Up Items

  • To start with, you need to make a new item in your inventory.
  • Type all the required information mentioned and make sure to type it correctly.
  • When done, you will have to go to the bottom of the screen and then choose the QOH option. You will now have to enter an average cost.
  • Other than this, if no units are available with you, you may have to enter purchase entry before sales.

Method 2: Using Sales Order with Inventory

  • First, you will have to look for the customer order and then change it to a sales order.
  • Next, you will have to purchase the item and add it to the Quickbooks company file data.
  • When done, you will have to convert the sale order to an invoice.
  • In the end, go to the edit tab and tick the checkbox to mark the invoice for the final option.

Method 3: Using Pending Invoices

  • To start with, you will have to enter the customer code.
  • Now, open the menu and then go to the Edit option. You will now have to choose the checkbox for the “mark invoice as pending” option.
  • When done, you will have to purchase the item for your inventory and then add those items to Quickbooks company file data.
  • Now, again go to the menu option, choose the “mark invoice as final” option, and then save the settings.
  • In the end, you will have to modify the invoice date to the item’s shipping date.

Types of  Quickbooks Negative Inventory Issues

Here are some common Quickbooks negative inventory errors that you can encounter.

Error 1: Vendor Reports Issues

In Quickbooks, inventory transactions are made on invoices. If you have sold an item that is out of stock, it will be adjusted in the next bill. So, usually, Quickbooks negative inventory issues may occur because of the vendor reports. You can check it by opening Vendor reports on Quickbooks.

Error 2: Discrepancies in Assembly Reports

Sometimes when a vendor does not have enough items in their inventory, they end up selling assembly items. But the cost of assembly items is different from the average cost, and it can lead to discrepancies in assembly reports. Therefore, it is advised that you do not sell assembly items. Or, if you do, make sure to enter build transactions prior to your sales.

Error 3: No Average Cost

  • This can occur when you have created an item in your inventory with only price and not added initialQOH.
  • If you have used an invoice for your first transaction rather than a check, adjust the value on hand or credit card transactions.
  • There is no average cost for the item.
  • In case the sales force is the reason that your items are showing negative inventory.
  • In the end, you may have purchased an item for a cost different than the average cost.

Read Also: Resolve QuickBooks Error 6000 77 (A Company File Issue)

Quickbooks negative inventory issue is tricky to resolve, and most people may be confused about how to fix negative inventory in Quickbooks. Hopefully, all the methods mentioned above will help you get rid of the issue quickly. If it didn’t help you, contact the support team for guidance.

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