Kington, UK -- (SBWIRE) -- 06/29/2021 -- Negative Quantity on Hand (QOH) or Negative Inventory in a QuickBooks data file happens when there are not enough items in stock. This could be because entering sales transactions were entered before entering purchase transactions.
Negative Quantity on Hand shows up on the balance sheet, but will mainly show on the Inventory Valuation Detail report with negative numbers in the Quantity on Hand (QOH) column. This could also result in data becoming damaged to the point that the file must be rebuilt entirely, the Cash-basis balance sheet becomes out of balance, vendor reporting is incorrect and Cost of Goods Sold (COGS) and profit amounts are incorrect.
According to John Rocha, E-Tech's Technical Service Manager, this can also be caused due to employee negligence. "Operators sometimes neglect to enter Item Receipts, hence QuickBooks cannot calculate an average cost-of-goods-sold (COGS) when it's sold if there is negative quantity," he said.
The way to prevent Negative Inventory from happening is to set up inventory items with an opening balance, using non-posting estimates and sales orders to track sales with no inventory, using pending invoices to enter sales with no inventory and setting preferences to warn of potential problems.
"You can also withhold permissions, which is the easiest way to prevent employees from making mistakes. Setting the date lock allows you to prevent users from entering transactions that they perhaps forgot to enter before month-end, and posting pre-dated Item Receipts and Invoices," Rocha said.
E-Tech offers a repair service to fix all instances of negative inventory in the file. The service will analyze the source data file to identify the items and dates the quantity on hand (QOH) went negative and then fix all occurrences of negative inventory.
The repaired file will not have negative inventory and will verify correctly in QuickBooks. There may be a change to the COGS and Inventory Asset account balances after the repair. There will also be a change to the Opening Balance Equity account that will be used to add the inventory adjustments.
For more information on E-Tech's QuickBooks Negative Inventory Repair service, visit https://quickbooksrecovery.co.uk/quickbooks-file-data-services/quickbooks-negative-inventory-repair/.
About E-Tech
E-Tech is the leading service provider of QuickBooks File Repair, Data Recovery, QuickBooks Conversion and QuickBooks SDK programming in the UK and Ireland. In their 20 years plus of experience with Intuit QuickBooks, they have assisted over 1000 satisfied customers with their requirements. E-Tech UK covers US, UK, Canadian, Australian versions which include Reckon Accounts, and New Zealand versions of QuickBooks through PC and Mac platforms.
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://quickbooksrecovery.co.uk/.
Media Contact
Melanie Ann
E-Tech
61 Bridge St.
Kington HR5 3DJ
Melanie@e-tech.ca
www.quickbooksrecovery.co.uk