Reviewing Negative Inventory
You can identify any negative inventory values that can be corrected by adjusting them to be positive. This process does not create a physical count. A physical count should already be completed before you begin this task.
Because an item's inventory level should be zero or positive prior to distribution, you should run this report before distributing inventory. Read more about inventory distribution in Distributing Inventory.
To review negative inventory:
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Go to Transactions > Inventory > Review Negative Inventory.
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On the Review Negative Inventory page, in the As of Date field, enter the date you want to review inventory through. For example, if you enter June 1, 2010, then the list will show inventory that has a negative count as of June 1st of 2010.
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The list of inventory items that shows identifies any items that have negative inventory.
If you use the Multi-Location Inventory feature, you can filter the list by location in the Location field.
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Use the list to adjust the amounts for those items so they are no longer negative. For each negative-quantity item on the list, you can enter an inventory adjustment to correct them. For details about entering an inventory adjustment, read Inventory Adjustments.
Reviewing negative inventory items is a required task for the period closing checklist. For more details, read Inventory Tasks on the Period Close Checklist.
To learn more, see Avoiding Underwater Inventory.