Negative Average Cost

I'll help you fix the issue regarding negative average cost, twilliam2.

Consider reviewing the item with the negative cost and manually adjust the amount to resolve it. You can follow these steps:

1. Go to the Lists menu and select Item List.
2.  Locate the item with the negative average cost and double-click on it. 
3. In the Edit Item window, click the Average Cost field and manually adjust it. 
4. Tap Save.

I'm sharing an article to learn how QuickBooks computes for the average cost and know which report will help with inventory management: Understand inventory assets and cost of goods sold tracking.

Moreover, I recommend reviewing this link to provide an in-depth understanding of negative inventory. It discusses the possible causes of negative inventory and outlines the steps to help you address and resolve any issues stemming from negative inventory: Fix negative inventory issues in QuickBooks Desktop.

Rest assured that I'll provide continued assistance whenever you require additional help managing inventory in QuickBooks.

Thanks for the response unfortunately the Average Cost Field in Edit Item is not clickable.

Thank you for the response.  Unfortunately Average Cost within Edit Item is not clickable.

 I can share additional information about how average costs updates in QuickBooks, @twilliam2. 

The average will update automatically after creating transactions using that inventory item. It'll be based on the sum of the cost of all of the items in inventory divided by the number of items. 

Here's more information about how QuickBooks handles inventory assets, average cost and Cost of Goods Sold (COGS): Understand inventory assets and cost of goods sold tracking.

You can also run the Inventory Valuation Summary report to see how we get the item's average cost.

Here's how:

1. Got to the Reports menu and select Inventory.
2. Click to open the Inventory Valuation Summary, then set the dates to All.
3. Double-click the item in question.

Check out this article for more information about running and adding filters to this report: Customize reports in QuickBooks Desktop.  

Let me know if you need further information about average costs of your items. I'm always glad to help in any way I can. Have a great rest of the day!