I have a POS inv. adjustment account. I was selling inv. w/o putting it into inventory. Once I started inputting inventory, I had negative quantities for certain inventory items. When I started putting in the correct quantity, I cause QB to create a $20K+ negative balance in an adjustments account (in my expenses). How do I fix this?
This is a common problem with POS users. The first thing to do is make sure your stated inventory in POS is now correct. Once you have an accurate amount in inventory, make a GJ entry in QB financial to adjust the inventory asset to the amount shown on the currnet inventory summary reports in POS, The offset in the entry will be the POS inventory adjustment account. You will probably still have an amount in this account even after this entry. I have never seen an client that doesn't. It represents a combination of adjustments POS made when inventory tranactions were handled correctly and incorrectly. For instance POS posts to this account if there is shrinkage reavealed in a physical inventory count or quantity adjustment memos.This adjustment account should be changed to a Cost of Goods Sold Account if it already is not and it will be part of your total cost of goods sold. From time to time your inventory asset will probably be off with the inventory amount in POS. If the amount is rather small in comparison to the overall inventory I usually make a GJ entry from time to time to adjust to the POS inventory. If transactions are handled correctly all these adjustments and the results of physical inventory should come close to washing over time. Try not to sell negative inventory quantities as it messes up cost of goods sold. Instead when a negative quantity pops up first do a quantity adjustment memo before recording the sale.
I have a similiar dilemma. I have sold inventory without entering them thru purchase orders. I don't know how to adjust the unit costs and get the remaining inventory back on track. Do you have any ideas. I'm not using QBs. I'm just concerned about POS. Basically, all the sold inventory is showing 100% profit and now my "on hand" count is all messed up.
