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  • 1.  If I enter an invoice and inventory is negative, will COGS be recorded?

    Posted 11-04-2016 17:03

    We have a situation where inventory was being increased through Item A and the sale to the customer was being recorded to Item B.  This caused Item A to be hugely over stated and Item B to be understated.  To fix this, the first step was to correct the original purchases to Item B.  Now, the quantity is right but the $ are way over valued. 

    My theory is that since the inventory value was negative, QB relieved more quantity through the invoice transaction, but COGS was $0.  Now that we've fixed the original purchase, that invoice is still incorrect.  I think we need to delete it and re-enter it.

    In addition, this company has just in time inventory (they order from a co-packer and sell to retailers through drop ship wholesale orders).  I believe some of the invoices were recorded before the bills from the supplier which would increase inventory.  The bookkeeper was ignoring the warnings that there isn't enough inventory to fulfill the orders.  So, I think the same thing happened on the financials (COGS had a $0 value).

    Are my theories correct and is the solution to validate that inventory purchases need to be completed prior to items being sold and is the solution to get that right first, then delete and re-enter the invoices, then apply the payment made from the original invoice to the newly created invoice?



  • 2.  RE: If I enter an invoice and inventory is negative, will COGS be recorded?

    Posted 03-16-2017 06:18
    For business process you are correct.  However, for the quickbase side of things it shouldn't matter what order it was "entered" in.  If it is incorrect I would suspect the design of the inventory and pricing control portion of the app is at fault. 

    The numbers should balance, no matter the timing, if it was designed and being used correctly.

    I'd take a deep look at how those quantities and values are calculating.