Kingston, Feb 16, 2022: Negative Inventory happens when sales transactions are entered but items have not been received.
John Rocha of E-Tech said that while recording the sales that happen, it is equally important to update the receiving items section. Inadequate or inaccurate reports of both the sale and receipt transactions will lead to negative inventory – which is a bad prospect for the stock as it will lead to incorrect financial statements, wrong reports, and damaged data files. Additional problems include incorrect profit and loss and cost of goods sold amount, unbalanced Cash Basis balance sheet, Incorrect balance sheet inventory amount, errors in Vendor reports, inventory purchase bills reflecting on income and expense reports and repeated data damage issues.
As per Intuit, when items are sold that have not been entered into the company file, the invoice records the Sales/Receivable transaction as expected. For the Inventory/COGS transaction, QuickBooks assumes that the average cost of the items not on hand is either the same average cost as the items you had on hand or the Item Cost from the Item List. QuickBooks records the Inventory/COGS transaction using the assumed cost.
If the next purchase is not at the assumed cost, then the purchase transaction must record an adjustment to Inventory and COGS to correct for the difference.
Because the bill now affects COGS, it appears on the P&L and other reports that show expenses.
One can also correct the issue of Negative Inventory by editing dates, changing the report to show all dates, looking through the report for items showing a negative amount in the on-hand, and adjusting dates so that the bill dates are before the invoice dates.
Checking to see if a file has Negative Inventory report also can be done through the Inventory Valuation Detail Report. This report will show negative inventory with negative numbers in the Quantity on Hand (QOH) column.
E-Tech’s exclusive Negative Quantity on Hand Repair service offers an exclusive service to repair data file and remove all instances of negative quantity on hand. For more information on E-Tech’s file preparation service, visit: https://quickbooksrecovery.co.uk/quickbooks-file-data-services/quickbooks-negative-inventory-repair/
Melanie Ann
Media Relations
ETech
61 Bridge St
Kingston HR5 3DJ
www.quickbooksrecovery.co.uk
About E-Tech
E-Tech is the leading service provider of QuickBooks File Repair, Data Recovery, QuickBooks Conversion and QuickBooks SDK programming in the UK and Ireland. In our 20 years plus of experience with Intuit QuickBooks, we have assisted over a 1000 satisfied customers with their requirements.
We offer a range of services for existing QuickBooks users and provide comprehensive solutions for small businesses. Additionally, our expertise covers the US, UK, Canadian, Australian (Reckon Accounts), and New Zealand versions of QuickBooks (PC and Mac platforms).
For media inquiries regarding E-Tech, individuals are encouraged to contact Media Relations Director, Melanie Ann via email at [email protected].
This release was published on openPR.
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