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tslava
Level 1

Prepaid invoice inventory

Hello,

 

I have a QB Premier Manufacturing and Whlesale 2015 edition. I have a customer who prepaid for material, and I provided them with an invoice for the full amount paid. My current inventory for this material is set to negative amount. The material will be delivered to me in the next couple years. When I receive partial shipments and try to create an assembly with this item, the QB won't let me create it, since the item's amount is negative. What's the proper way to handle this situation?

 

Thanks,

Ed 

1 Comment 1
JessT
Moderator

Prepaid invoice inventory

Thank you for taking the time to post today, Ed.

 

Technically, you can still create an invoice even if QuickBooks warns you of having a zero quantity. However, this will result in a negative inventory count, but it will be adjusted when you build the assembly. This will also result in having an income for the sale of something that does not exist.

 

Instead of giving them an invoice, you can give them a sales order listing all the items they paid for. Then, you'll want to enter a message in the CUSTOMER MESSAGE box pertaining to their payment. You can also give them a written acknowledgment receipt of payment if they request for it.

 

Please let me know if you have other questions about this.

 

By the way, we have blogs relevant to our situation today. Feel free to check them out.

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