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parts-inmotionsg
August 3, 2023
Question

My Inventory account on the Balance sheet with accounting method accrual is coming with a negative sign; how can I fix it?

  • August 3, 2023
  • 1 reply
  • 0 views
If I generated the BS with accountig method cash, the inventory account is coming with positive amount.

1 reply

BigRedConsulting
BigRedConsulting
August 3, 2023

The balance is based on the transactions you've entered into QuickBooks. You can see what makes up the balance by double-clicking the value on the report.

 

Generally, an inventory account with a negative balance suggest you've oversold your inventory, that you've sold more than you've purchased. Could that be the case?

P
parts-inmotionsgAuthor
August 4, 2023

I have reviewed the inventory valuation report, and they correspond to the inventory adjustments that we have made. We make these adjustments when we use parts in machine repair or when we add parts that we remove from the machines we buy.

But I think something is missing to be done or we are not doing it correctly so that the account does not look negative.

Does anyone in the community manage parts inventory?

LieraMarie_A
LieraMarie_A
August 4, 2023

Hi there, @parts-inmotionsg.

 

To better understand the issue you mentioned regarding the account appearing negative, could you please provide some additional information or screenshots? This would help us identify any potential gaps or missteps in the process and work towards finding a solution.

 

  1. Could you share specific examples of transactions that led to negative values in the account?
  2. Are there any particular steps or procedures you think might be missing or not being executed correctly?
  3. Could you provide screenshots of the inventory valuation report or any related reports showing the adjustments and negative values?

 

We're committed to resolving the issue and ensuring accurate inventory management. Your cooperation in providing the requested information will be greatly appreciated.

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