Kington, UK -- (SBWire) -- 03/17/2021 --Failure to input correct transactions in QuickBooks results in a negative carrying balance of inventory, becoming the number one reason for corruption in the data file.
Neglecting to enter Item Receipts. Customer service enters invoices without sufficient quantity on hand causes QuickBooks to be unable to calculate an average cost-of-goods-sold (COGS) of the item when it's sold if the item has a negative quantity. Negative Quantity on Hand (QOH) or Negative Inventory in a QuickBooks data file occurs when items that are not in stock are sold - by entering sales transactions before entering purchase transactions.
Negative Quantity on Hand shows up on your balance sheet, but will mainly show on the Inventory Valuation Detail report with negative numbers in the QOH column. Issues that can arise due to Negative Inventory are Inventory item has no average cost, incorrect Cost of Goods Sold (COGS), Vendor reports have Errors, incorrect COGS in Inventory Assemblies on job costing reports and balance sheet Out of Balance Error.
This can be avoided when the inventory preference is turned on. With QuickBooks Premier, the warning can be set to "if not enough goods to sell" to the "Quantity Available," not the "Quantity on Hand." By using this setting, the user gets a warning that the order they are entering will put the balance of items into negative territory.
Withholding permissions also prevents employees from making mistakes. Setting the date lock allows prevents users from entering transactions that they perhaps forgot to enter before month-end, and posting pre-dated Item Receipts and Invoices.
Reviewing the Inventory Stock Status report frequently and conducting cycle counts frequently also minimizes the risk of errors.
E-Tech offers a repair service to fix all instances of negative inventory in the file. The service will analyze your 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.
More service specifications for E-Tech's QuickBooks Negative Inventory Repair Service can be seen at 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
Minimize the Risks of QuickBooks' Negative Inventory on Hand by Following Simple Measures