Last Updated on June 10, 2021 by Akshay Tyagi
If you are using QuickBooks inventory management but still not able to run it properly and facing the negative inventory in QuickBooks Online? Don’t worry this article will help you to get rid of this issue, and to maintain the business with QuickBooks without any problem. Want to know how? Here you can know, what actually is it, how does this issue occurs, how to solve it. So, do read this article till the end, it will definitely resolve the negative inventory issues in QuickBooks online.
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What are Negative Inventory Issues in QuickBooks Online ?
You have kept a certain amount of products in your inventory to sell to customers. When we manage QuickBooks advanced inventory, there are some stocks on our hands. That current stock is known as the quantity on hand. The quantity hand will be zero when you sell out of a product. But if somehow, the quantity of hand is less than zero then you have a negative inventory issue.
In Intuit QuickBooks online there may be a chance that you oversell products. It can be an accident that you oversell the product. Now let’s see what can be its solution.
Solutions to fix Negative Inventory in QuickBooks Online
Negative Inventory Issues can be solved by the following steps. Follow each step carefully to solve the negative inventory issues in QuickBooks Online.
Solution 1: Review your Quantity
First you need to review your quantity on hand. First you have to count your entire inventory.
- First login to the QuickBooks Online
- And select the Report Menu.
- Search and then open “Inventory evaluation details”
- Select “All Dates” from the drop down menu of “Report Period”.
- Select “Run Report”
If you are seeing a negative amount in the QTY column then you have a negative inventory for that product. You can take a note of how much you have oversold.
After reviewing your quantity Check what’s out of Stock. If you only want to see the products which are out of stock then follow the steps:
- Navigate to the Sales Menu.
- Select the “Products and Services” option.
- Select “Out of Stock” at the top of the list and choose “Low Stock” .
That is how you can check what’s out of stock easily.
Solution 2: Converting Open Purchases Orders to Bills
If you get any purchase orders,you have to convert them into bills. What it will do is it will inform QuickBooks that items are on the way. QuickBooks only counts those items which are inventory after converting purchase orders to bills.
- Select “New”
- Then select “Purchase orders”.
- Fill out the purchase order and save it.
- Navigate to the “Expense Menu”.
- Search for any open purchase orders.
- If you see “Send” in the Action column, Select it to send the purchase order to supply.
Now when you know that your order is on the way then do the following:
- Select “Copy to bill” to convert a purchase order to bill.
- Review it and then select “Save and close”. There is no need to pay the bill yet.
- After converting the purchasing orders,try to run another valuation detail report. It will give you an update regarding inventory count in QuickBooks.
Solution 3: Do Physical Inventory
Now you have to do physical inventory. Physical inventory is when before ordering you actually check what you have in stock.
- Go to the Reports menu.
- Find and print “Physical inventory Worksheet”.
- Go to the stock room and count the product you have in stock.
- Record the number on the Physical inventory Worksheet.
- Now Compare the physical inventory worksheet with what’s on the inventory valuation detail report which you have in the second step.
If quantities of products are different you have to adjust the quantity to make it accurate in QuickBooks.
Note : Do the above step after you have converted open purchase orders to bills.
If you lost or misplaced inventory, reach out to your accountant. To handle these kind of situations there are special ways.
Solution 4: Ordering More Product
If your inventory is still negative then you can order more products. Now Create and send purchase orders for what you need. You won’t receive your order instantly.
In between that time if a customer orders something that’s out of stock you can create an estimate to start the transaction.
If you want to fix negative inventory issues in QuickBooks Online then you have to review your quantity, convert open purchases to bills, do a physical inventory, and order more products. These 4 steps will help you to resolve the issue. Other than that you should have physical inventories regularly. If you are still facing the QuickBooks negative inventory problem then contact our QuickBooks experts to know the permanent solution to the problem for the enterprise support.