Brandon, MB -- (SBWIRE) -- 01/20/2020 -- Negative Inventory happens when sales transactions are entered but items have not been received.
It is important to have a clear understanding of how QuickBooks works before start recording data and manage records. John Rocha of E-Tech said that while recording the sales that happen, it is equally important to update the receiving items section. Inefficient recording of both the sale and receipt transactions will lead to negative inventory.
Record the sale transaction before the item is ordered is a good way to prevent negative inventory data. A negative inventory is a bad prospect for the stock as it will lead to incorrect financial statements, wrong reports, and damaged data files.
Additional problems include incorrect profit and loss and cost of goods sold amount, unbalanced Cash Basis balance sheet, Incorrect balance sheet inventory amount, errors in Vendor reports, inventory purchase bills reflecting on income and expense reports and repeated data damage issues.
"This situation can easily be avoided if you record the sale of inventory items after you have purchased them and entered the purchases into QuickBooks," John Rocha, E-Tech's Technical Service Manager said. "Before attempting to correct negative inventory, it is important to back up your data and keep it safe," he added.
E-Tech is a leading QuickBooks consultancy service provider in North America.
One can also correct the issue of Negative Inventory by editing dates, changing the report to show all dates, looking through the report for items showing a negative amount in the on-hand, and adjusting dates so that the bill dates are before the invoice dates.
Checking to see if a file has Negative Inventory report also can be done through the Inventory Valuation Detail Report. This report will show negative inventory with negative numbers in the Quantity on Hand (QOH) column.
E-Tech's exclusive Negative Quantity on Hand Repair service offers an exclusive service to repair data file and remove all instances of negative quantity on hand. For more information on E-Tech's file preparation service, visit: https://e-tech.ca/Quickbooks-Negative-Quantity-on-Hand-(QOH)-Repair.aspx
About E-Tech
Founded in 2001, E-Tech is the leading file repair, data recovery, and data conversion services provider in the United States and Canada. The company works to stay up to date on the latest technology news, reviews, and more for their customers.
For media inquiries regarding E-Tech, individuals are encouraged to contact Media Relations Director, Melanie Ann via email at Melanie@e-tech.ca.
To learn more about the company, visit: https://e-tech.ca/