Close fiscal year with negative inventory items

You need to adjust the item quantity to close your fiscal year, Sharon.

If the quantities of your items fall below zero, it will prevent you from closing your books. You can follow the steps below to make the necessary adjustments and ensure you can complete your task.

1. Open your QuickBooks account.
2. Go to + New.
3. Under Other, select Inventory qty adjustment.
4. Ensure the Adjustment date is set before your closing date, then add the necessary information.
5. Then, select the account you want to use  for tracking the transaction from the Inventory adjustment account dropdown.
6. Type the item you need to adjust in the Product column, then add zero (0) in the New QTY column.
7. Once done, click Save and close.

After verifying the accuracy of all details, you can proceed with closing your fiscal year. Moving forward, consider using the reorder point feature to enhance your inventory management.

Also, here's an article to assist you in tracking your inventory sales and stock levels in QuickBooks: Use reports to see your sales and inventory status.

Feel free to post in this forum if you have any other questions or require further assistance with this concern.