How to Fix Negative Inventory in QuickBooks? Learn Latest Ways to Resolve

Are you an active QuickBooks user? Have you ever wondered “how to fix negative inventory in QuickBooks?” Well, if yes, then this page is for you. We have prepared this article to make you more aware of the QuickBooks Negative Inventory, its pros/ cons, and different ways to resolve the issue from the system.

We all know that QuickBooks is one of the most popular applications among the user. The software has made its special place in the list of useful retail management applications. The owner of various businesses uses QuickBooks to manage their transactional records and keep the data at the fingertips. However just like any other software QuickBooks also irritates its users with different errors, and we will discuss one of them in this article.

If you are someone who is dealing with the same issue and wants to resolve it then read the article till the end. 

What is QuickBooks Negative Inventory?

The issue of QuickBooks Negative Inventory generally arises when the data of the purchase and the sales do not match. Below are three possible scenarios for the occurrence of the QuickBooks inventory adjustment error.

The sales product is recorded in the company file

• When the user buys a product from the Items Tab on the item receipt bill, MasterCard, bill or check and crediting money, A/P or MasterCard owed.
• Then the user will be able to sell the item from the inventory. However, the user would not be able to sell over the stock things.
• Sale group action records 2 transactions.

• Editing A/R and crediting sales: Sale/ Receivable transactions.
• Crediting Inventory and debiting COGS: Inventory/ COGS transactions.

• Try to run the P&L and expense report that shows the invoices and sale receipts.
• After that, Run B/S reports that show item receipts, checks, bills, and MasterCard charge.

The sells product is NOT entered in the company file

• Saves the invoice information for the Receivable/ Sales transactions needless to say.
• For the items or products that aren’t existing, QuickBooks assumes them as:

• Same at the price of the opposite item existing.
• The cost of the item from the product list.

• QuickBooks COGS/Inventory dealing with the assumed value.
• To correct the distinction, QuickBooks doesn’t assume the value of successive purchases so the acquisition dealing is going to be recorded as QuickBooks inventory adjustment.

Causes of the QuickBooks Negative Inventory

There are various reasons behind the occurrence of the QuickBooks Negative Inventory. You might have gained some ideas regarding the occurrence of Negative Inventory QuickBooks.  Now we will discuss the common triggers that might have caused the QuickBooks Negative Inventory in your system.

• The amount of profit and COGS could be incorrect.
• The corrupted and damaged information may have to rebuild the file to bring the B/S in the balanced form.
• The Balance sheet Inventory may not be correct.
• The user may have entered the wrong reports of the Vendor.
• Your system could be overflowing with errors.
• Error: Itemhistupdateengine.cpp — LVL_ERROR–Error: Verify item history Target average cost mismatch error
• Error: Verify Account Balance failed. Calc bal = 0.00, List bal = *overflow*
• Error: LVL_ERROR–Error: Verify Account: Invalid balance. The amount of overflow has occurred. Rcrd = 99.
• Error: Itemhistupdateengine.cpp — LVL_ERROR–Error: Verify Item History: Bad target COGS for Item.

How to Verify if the Data File has Negative Inventory?

1. Go to the QuickBooks software system in your system.
2. Choose possibility|the choice} Reports and so explore for the Inventory option.
3. Now faucet on the choice Inventory Valuation Detail.
4. After following the higher than steps currently search all the incidence of the negative amounts within the column to be had.

For the users of QuickBooks Premier or Enterprise 2014. If you are using the software without Advanced Inventory then follow the following steps:

1. Look for the Suppliers Menu and click on that.
2. Click on the Inventory Activities and so move to the Inventory Centre.
3. Go to the highest left of the Inventory Centre and take a look at the filter from Active Inventory to Assembly to QOH <= Zero.

For the users of QuickBooks Enterprise 15.0 and later. And you do not have the Advanced Inventory then carefully perform the steps below:

1. Go to the menu of Reports.
2. Choose the choice of Inventory and so choose point Listing.

What are the Different Problems Users Faced While Using the QuickBooks Negative Inventory?

When a user deal with the Negative Inventory while using the QuickBooks software, he/she might face many problems, they are:

Negative Inventory Due to the Supplier Reports

The Inventory would appear normal in the invoice. If the user sells the products that are out of stock then the QuickBooks Inventory Adjustment will adjust the COGS/ Inventory transaction.

Introducing New Inventory with no Average Cost

• If, the user has created a new inventory item, with the Product Cost however doesn’t add associate initial QOH/ VOH. QuickBooks can assume that the product has no price. rather than a bill, the primary dealing of the item would be used as an associate degree invoice. This may force the sale towards negative inventory. The price of the item would differ from the cost price. The distinction will cause associate degree adjustment on the P&L report.
• If, the user has created a brand new inventory however while not the product price. Hence once the user would sell the item, it won’t have any inventory. QuickBooks doesn’t have any information or data relating to the common price, so it’d calculate the mean price of $0.00. As a result, the info can distort the info of your inventory and COGS. the info isn’t correct till the user has established the common worth with a MasterCard, bill, check, or price On Hand/ modify Qty.

Assemble the Inventory to Incorrect COGS on Job Costing Reports

If you have less stock quantity and you have created an assembly that has a less price than the mean price. Then the Inventory will adjust to build the transaction that involves invoice.

Important Points to Remember Before Fixing the Issue

However, make sure to read all the necessary points to consider to resolve the problem before directly jumping into the solution.

• Ensure to create backup company files before fixing the QuickBooks Negative Inventory.
• It is always safe to create a new data file as the Negative Inventory is a risky error to solve.

Also Find, How To Download and Use Quickbooks Auto Data Recovery Tool? 

How to Resolve the QuickBooks Negative Inventory?

1. Look for the Discover menu and so faucet on the Reports choice.
2. Go to the Inventory and hit the choice Inventory Valuation Detail.
3. Choose the drop-down arrow and attend the Dates, marked them all.
4. Scroll the Reports that show the negative quantity within the column On hand.
5. Perform the settings of the bill with the accuracy of the date.
6. After following the steps, attempt to repeat steps 3 and 4.

Sales Initial Transaction

1. Navigate the Reports menu so hit the Inventory.
2. After that click on the Inventory Valuation outline.
3. QuickZoom and look at the double item displaying wrong values.
4. View the initial bill to run the bill window.
5. Try to modify and change the bill date before the date of the beginning invoice.
6. Click on the Save possibility and shut it.
7. Check the wrong product to modify it.

Entering the Purchase Details Before the Sales Data

1. Change the settings of the dates.
2. Navigate the Menu bar so press the reports.
3. Go to the Inventory choice and hit the Inventory valuable detail.
4. Select the drop-down, click on the Dates so hit the All button.
5. Change the date of the bill.
6. Save the changes.

How to Avoid QuickBooks Negative Inventory?

Hopefully, the above methods help you to resolve the QuickBooks negative inventory problem from your system.

Sales Order to Estimate the Sales Entry

1. Type the order of the client as a Sale Order.
2. Or, you’ll be able to additionally enter the client order because of the Invoice.
3. Then the user will mark the Invoice as Pending. To do that, head to the Edit possibility so Mark the Invoice as Pending.
4. Make sure to shop for the things 1st so enter them into the Company file.
5. After following the previous steps, you will convert the Sales Order to Invoice otherwise you can even mark the Invoice because of the final one.

Enter the sales to Use Pending Invoice

1. In the Invoice, enter the client order.
2. Then head to the Menu bar, and opt for Mark Invoice As Pending.
3. Buy the item before coming into it into the corporate file.
4. Go to the menu bar, opt for Edit so Mark Invoice as Final.
5. Amend or change the Invoice date to the shipment date of the things.

Final Words!

It was all about the QuickBooks Negative Inventory. We have divided the whole article into a few sections. First, we tried to define the Negative Inventory then we jumped into the triggers that have caused the error in the system. Then we have shared all the important points to check and identify the issue in the system. You have later discovered various ways to fix the QuickBook Online Inventory.

However, if you are still getting some issues while using QuickBooks then try to contact the support team of the software. To get the helpline number you can visit the official website of Intuit QuickBooks. The team is available for 24X7 help to the user. If you find the article helpful then share it with your friends and teammates. You can also check out other QuickBooks-related articles on our website. Stay Connected!