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kyleenich's avatar
kyleenich
Experienced Cover User
10 months ago
Solved

Negative inventory account balances

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 business sale so need to have the correct figures in place.  There is nil stock of the item, so the value should be zero, not a negative amount.  Can I correct his with a journal?  If so can you help?  If not how do i fix?  TIA 

  • Hi kyleenich 

     

    While the MYOB scripts may fix unusual inventory item values and on hand counts, they don't usually fix existing transactions. 

     

    Before you proceed with the suggested Inventory Adjustment Journal, it may pay to get a MYOB consultant well versed in inventory issues in AR2023 to take a closer look at the file to see what has caused this situation. It may well have been caused by an incorrect Item setting, or by an usual transaction, or by using an incorrect item value.

     

    Without knowing how it was caused you are not going to confidently know how to fix it. Typically if an Inventory asset account is in negative, this means too much COS was shifted from this account to the P&L Cost of Sales account linked to the item(s). If there are no items on hand, an Inventory Adjustment Journal may make things worse. A general journal Dr the Inventory asset account and Cr the linked Cost of Sales is more likely to both fix the account balance and correct an overclaim of costs on the P&L. 

     

    Regards

    Gavin

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  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator

    Hi kyleenich,

    Thank you so much for your post and for the Detailed information. I really appreciate your patience and understanding about this issue, and I do apologize for the delayed response.

    I'm sorry to hear that. We do have an online script to run to fix this issue. Can you please reply this thread with the following information: 

      Last four digits of the Serial Number.
      Company File ID/Name

    Looking forward to hearing from you soon.
    Regards,
    Earl

    • kyleenich's avatar
      kyleenich
      Experienced Cover User

      Hi There,

      Thanks for responding to my query. Last four digits of serial number are 0050.  Company file name is MB Direct Pty Ltd.  I will sign everyone out of MYOB now.

      • Earl_HD's avatar
        Earl_HD
        MYOB Moderator

        Hi kyleenich,

        Thanks for your patience. I've successfully run an online script over your file to fix this issue.

        Please do let me know how you go on this.
        Regards,
        Earl