Kingston, January 28, 2022: QuickBooks does not prevent users from selling more items than are available in stock. When this happens, the item's quantity becomes negative.
Items are often sold even though there is an insufficient quantity on hand. It is very important to prevent inventory quantities from falling into a negative status. Why this happens could be due to several reasons – the most common of which are that inventory control takes time. In order to track inventory quantities, every transaction that affects inventory would have to be entered. Also, in case of dropshipping, the sale would need to be recorded before the item is ordered.
Negative inventory is bad because Profit and Loss Cost of Goods Sold (COGS) amount turn out incorrect, cash basis balance sheets are out of balance, balance sheet inventory amounts show incorrectly, vendor reports contain errors and bills for inventory purchases show up on income and expense reports.
The situation of negative inventory can be avoided by setting up inventory items with an opening balance. This can be done by entering the quantity on hand and value to establish the average cost when creating a new inventory item. Non-posting estimates and sales orders can be used to track sales for which inventory is available. Pending invoices can also be used to enter sales for which inventory is available.
Withholding employee permissions prevents employees from making similar mistakes, while setting the date lock prevents users from entering transactions that they may have forgotten to enter before the end of the month.
QuickBooks Repair Pro offers a repair service to fix all instances of negative inventory in the QuickBooks file. The service will analyze the source data file to identify the items and dates the quantity on hand went negative and then fix all occurrences of negative inventory. The repaired file will not contain any trace of negative inventory and will verify correctly in QuickBooks.
Visit https://quickbooksrecovery.co.uk/quickbooks-file-data-services/quickbooks-negative-inventory-repair/ for more information.
About QuickBooks Repair Pro
QuickBooksRepairpro.com is a leading QuickBooks File Repair and Data Recovery, QuickBooks Conversion, QuickBooks Mac Repair, and QuickBooks SDK programming services provider in North America, serving thousands of business users all over the world. With over 20 years of experience with Intuit QuickBooks, QuickBooksRepairpro.com assists QuickBooks users and small businesses with a variety of services and work with the US, UK, Canadian, Australian (Reckon Accounts), and New Zealand versions of QuickBooks (PC and Mac platforms).
For more information, visit https://quickbooksrepairpro.com/