Negative Inventory on Balance Sheet - QuickBooks Desktop

How to Find if your data file has Negative Inventory?
Run the Inventory Valuation Detail (IVD) report in QB:

In QB, select Reports>Inventory>Inventory Valuation Detail.
Click the Dates drop-down and select All.
Find all occurrences of negative amounts in the On Hand column.

How to Fix Negative Inventory?
Adjust the transaction dates such that bills are dated before invoices:

From the QB menu, select Reports and then Inventory and then Inventory Valuation Detail.
Click the Dates drop-down arrow and select All.
Scroll through the report to an item that is showing a negative amount in the On Hand column.
If you can do so legitimately, adjust the dates of the bills and/or invoices so that the bill dates are before the invoice dates.
Repeat the steps for each item with a negative quantity in the On Hand column.
Caution: It is not sufficient to adjust the current QOH to a positive value. You must eliminate each occurrence of negative QOH.

Another option, consider buying a 3rd party file repair service. They will analyze your 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 QB. 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. You will need to add adjusting journal entries after the repair.

Looking back over the past YEAR! this new client didn't use purchase orders or invoices only recorded the payments as the invoices came in. Any suggestions on how to fix this?

How do they have inventory?

Run the Verify/Rebuild Data utility. Did you encounter any error message?

Verify Data shows no problems. I'm in the Accountants Transfer File so it will not allow me to Run Rebuild

I have not received any error messages

I would recommend to convert the file to *.qbw file format and run the Verify/Rebuild Data utility. If you found no error message, run the Condense Data utility with any scenario. Did you encounter any error message?

Let me share some information about the negative inventory on the Balance Sheet report, SueD1.

We appreciate you for performing the steps provided on this thread. The negative inventory is caused by entering sales transactions before entering the corresponding purchase transactions. An example of it is when you sell inventory items that you do not have in stock.

The negative inventory can show up on your Balance Sheet but primarily it shows on the following reports:

Inventory Valuation Detail (IVD) report:

The IVD is the ONLY report that you can use to evaluate the extent of your negative inventory. Negative inventory shows with negative numbers in the Quantity on Hand (QOH) column. Here's how: 

1. Go to the Reports menu.
2. Select Inventory, then select Inventory Valuation.

Negative Item Listing report:

If you are using QuickBooks Enterprise 15.0 and later, you can use the Negative Item Listing report. Note that it shows current negative quantities but NOT the past negative quantities.

1. Go to the Reports menu.
2. Select Inventory, then choose Negative Item Listing.

1. Go to the Reports menu.
2. Select Inventory, then choose Negative Item Listing.

If you are using QuickBooks Premier or Enterprise 2014 or earlier without Advanced Inventory, you can use your Inventory Center: 

1. Go to the Vendors menu.
2. Select Inventory Activities, then click Inventory Center.
3. On the top left of the Inventory Center window, change the filter from Active Inventory to Assembly to QOH < = Zero.

To resolve this, you can check out this article for the steps and details: Fix negative inventory issues in QuickBooks Desktop. If the same thing happens, I'd suggest contacting our Technical Support Team. They'll pull up your account in a secure environment and investigate what's causing this issue. Here's how: 

1. Go to the Help icon, then select QuickBooks Desktop Help.
2. Press Contact Us.
3. Enter a description of your subscription concern, then click Continue

Please check out this article for our support hours: Contact QuickBooks Desktop Support. It is to ensure we cater to your needs on time. Additionally, you can check out this article to learn more about how to personalize reports in QBDT: Customize Reports in QuickBooks Desktop.

Do you have any other questions about your customizing reports? Please let me know in the comments section. This thread is always open to answer any questions you may have. Keep safe. 

Thank you I will try these steps!