Skip to main content
A
Andreassku
September 27, 2022
Question

QuickBooks Online Negative Inventory

  • September 27, 2022
  • 1 reply
  • 0 views

I have an ecommerce client who fulfills a lot of their orders by ordering products from their suppliers as orders come in and then wait for the products to arrive at their own warehouse before shipping them to customers.

 

Since they don't carry inventory for a lot of these products, once a purchase order has been created, the inventory value will for example go from 0 to -10 if someone were to order 10 of that product. This will remain in the negative until my client receives the items and then creates a bill from the purchase order which will then put the 10 items back into inventory.

 

The problem is, QBO won't let us lock down the company file whenever any product has a negative balance so when we get to year-end preparations we will be forced to make inventory adjustments to allow us to lock down the company file and start working on the year-end before adjusting the inventory back again after.

 

Has anyone else had similar experiences and are there any better ways of going about this?

1 reply

J
JamesM4
September 27, 2022

Hi there,

 

Welcome back to the Community. QuickBooks is a powerful program that helps you manage your work with peace of mind. I'll be glad to share more info so you're on the right track with your work.

 

Recording your transactions properly is an essential step for maintaining clean books. To ensure accuracy in your books, I recommend reaching out to an accounting professional for expert advice on this. If you're not in contact with a professional, don't worry, you can search for one using this link here. In the meantime, feel free to check out this helpful article as it provides more info about the: QuickBooks Online year-end guide and checklist.

 

I'll also leave this question open in the Community so other accountant users can share their advice. Otherwise, feel free to ask other questions, I've got your back.

Terms & ConditionsAccessibility statement