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bbehrouz-getgene
January 3, 2022
Question

Quantity on hand for some inventory items are negative and I cannot close my book because of that. How do I update inventory quantity when I enter a bill (Purchase)?

  • January 3, 2022
  • 11 replies
  • 52 views
In summary, I want to know how inventory quantities get updated in QB online?

11 replies

lin_jcaj
Level 9
January 3, 2022

Let's fix your negative quantity on hand, bbehrouz-getgene.

 

The Quantity on Hand being negative is caused by selling an item you don't have in stock. I've listed below what causes negative inventory:

 

  • You simply more products than you actually had.
  • You didn't enter all of your purchase orders into QuickBooks.
  • You miscounted your physical inventory so the quantity in QuickBooks is different.
  • The quantity you got from your vendor didn't match the purchase order in QuickBooks. This can cause a miscount.
  • You didn't convert your purchase orders to bills. QuickBooks only counts items as inventory after you create a bill.

 

Please refer to this article for the detailed steps on fixing negative inventory: Fix negative inventory issues in QuickBooks Online.

 

For additional references about managing inventory in QBO, check out these articles:

 

 

Feel free to leave a comment below if you have any other questions about inventory management, @bbehrouz-getgene. I'm always here to help. Have a good day!

bbehrouz-getgeneAuthor
January 3, 2022

Thank you for your information. I tried clicking on the link for more info but the link was deleted.

So in order to update quantity when we purchase, is to create a purchase order and change it to a bill?  We do not use purchase order when we purchase from our vendors. It there a way to update quantity under a bill instead?

Catherine_B
Level 9
January 4, 2022

Hello there, bbehrouz-getgene.

 

I can help you record your purchases to balance out your quantity on hand. 

 

Negative Inventory is caused by entering sales transactions before entering the corresponding purchase transactions. Yes, you can directly create a bill to balance up your quantity on hand. 

 

Let me show you how: 

 

  1. Click the +New icon and select Bill.
  2. Enter the vendor's name and bill details.
  3. Select the items and the number of quantity to add.
  4. Click Save and close.

You can check out this link that will help you track the things you buy and sell, and the status of your inventory: Use reports to see your sales and inventory status.

 

Keep me posted if you have additional QuickBooks questions, bbehrouz-getgene. I'm always here to help.

Kevin_CModerator
Moderator
January 5, 2022

Glad to have you back here in the Community, @bbehrouz-getgene. I'm here to clear things up for you about inventory adjustments in QuickBooks Online (QBO).

 

When you adjust an inventory's quantity on hand, it affects the stock in your Cost of Goods Sold account. Please note that this takes effect even if your books are closed.

 

Furthermore, if you still have some confusion with inventory adjustments, I recommend seeking help from your accountant. They can provide more expert ways of dealing with this situation.

 

Additionally, I'll provide this article about setting up and tracking inventory in QuickBooks Online. This will help with tracking what's on hand, getting alerts when it’s time to restock, and see insights.

 

Let me know in the comment section if you have any other questions or concerns with inventory adjustments. I’ll get back to answer them for you. Have a wonderful day!

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