How to reduce a credit note from inventory

If you're referring to an Accounts Payable bill, enter a credit to reverse the bill.  To create a credit, select "Credit" at the top of the bill form.

I'd like to share additional insights about keeping track of inventories in QuickBooks Desktop, @Vicente Velis.

When you create an invoice, the quantity used in the sales transaction is deducted from your inventory. You must record the bill to an Inventory Asset account in order to link it to your inventory items. Here's how:

1. Open the Vendors menu, then choose Enter Bills.
2. Click on the Expenses tab, then pick the Inventory asset account.
3. Type in the amount of the down payment as a negative value.
4. Go to the Items tab, and enter the items. The bill will equal the balance owed after deducting the down payment. 
5. Once done, click on Save & Close.

Additionally, you can perform an inventory quantity adjustment. This helps keep your inventory status updated.

Lastly, I recommend consulting with your accountant to ensure you're using the correct accounts. Or they may have a different method of recording the transactions.

See these guides for future reference. This includes more information about how inventory works and resolutions when you encounter negative amounts on it.

• Understand inventory assets and cost of goods sold tracking
• Fix negative inventory issues in QuickBooks Desktop

You can always get back to us by replying to the thread. We're here to answer your queries with inventory or QuickBooks in particular. Take care!