Negative inventory account balance
Hi I have an item in inventory that has a negative account balance even though the item has had no transactions for in excess of 18 months. We are reonciling the inventory values in preparation for ...
Forum Discussion
Hi kyleenich
Suggest you take a look at this help article - Making Inventory Adjustments.
Regards
Gavin
Hi Gavin
Thanks for your email. I tried to adjust the value only as per what you sent through. The message "If you have no items on hand, the value of your inventory must be zero" comes up because there is nil stock. For the sake of argument I put one unit at the value amount, which allowed the journal to be recorded. However this did nothing to correct the negative account balance when I ran an inventory reconciliation report. Please have a look at the balance sheet, I have attached a screen shot in the doc below. I have had problems before with unresolved inventory values which resulted in MYOB assistance running a script over the file. Do you think this would resolve it?
Hi kyleenich
I am a forum user just like you, so I cannot access your file. You would need to spoke with a MYOB moderator for that. I suggest you edit the post to remove the serial number.
Inventory in MYOB can be complex. Without closely examining the file it is impossible to tell what has gone wrong and how to fix without creating other issues.
MYOB's scripts fix some of the bugs with on hand counts etc, however they don't fix bad transactions. You could try the script.
Otherwise it is a case of getting the Item Register in MYOB (the internal system that determines inventory on hand count and value figures) to agree with the Inventory Account balance for the items. The primary document for this is the Inventory Value Reconciliation report which compares the Items Register values with the Account Balances.
An Inventory Adjustment Journal can be used when you need to adjust the Item Register. Depending on which Account you use, the adjustment may affect only the Item Register, or it may affect both the Item Register and the Inventory Account Balance. It all depends on what you want to achieve.
I suggest you get someone who is very familiar with how MYOB's Inventory system is supposed to work to have a look at your file and make or recommend how to fix. If you want contact details for someone who does this sort of thing all the time, send me an email or a private message.
The end result is that the Inventory Value Reconciliation Report should show $0 discrepancy for each Inventory Asset Account. Depending on what has gone wrong, there may also need to be adjustments to the Sales and/or COS accounts.
Regards
Gavin
