Negative Stock With Positive Value

Jonathan2708

Hi,

I have some items that show negative inventory but a positive value in the valuation report. I want to correct this to show the value as zero but am unsure of the entries that need to be made.

Any help appreciated,

Jonathan

ecclectic

you need to purchase or make a positive adjustment at the required cost to make your your inventory zero. then run adjust cost item entries and post cost to g/l if automatic cost and expected cost posting not activated

bbrown

Follow the advice of ecclectic. This situation can occur if you are purchasing inventory at a cost above the Item."Unit Cost", and have not invoiced the PO and run adjust cost.

Consider the following example:

1. Create a new item and set the Item."Unit Cost" = $10.00

2. Create a purchase order for 100 units @ 15.00 each.

3. Receive the PO (do not invoice). Run Inventory Valuation. The valuation will show:

Qty. = 100 Value = $150.00

4. Create a Sales Order for 120 cases. The selling price does not matter.

5. Ship and Invoice the Sales order. Then run Inventory Valuation. the valuation will show:

Qty. = -20 Value = $30.00


To Adjust Inventory Value:

6. Purchase and Invoice 20 Units.

7. Invoice original PO.

8. Run Adjust Cost.

Qty. = 0 Value = 0