Inventory

Using negative inventory

 

You can select a preference in the Preferences window - Inventory view that will allow you to have the value and the on-hand quantity of an inventoried item be less than zero.

Selecting the preference "Allow the sale of items with insufficient quantities," allows you to sell a quantity of an inventoried item greater than the MYOB AccountEdge on-hand quantity. That means, you can record a sales transaction in MYOB AccountEdge that will result in negative inventory.

Important:

Negative on-hand quantities can be adjusted with a purchase, an auto-build or an inventory adjustment.

Once the adjusting transactions have been recorded, the adjusting transaction can't be changed, reversed or deleted.

Transactions that would result in an item with a negative or zero value with positive on-hand quantity or the alternative -- a positive value with a negative or zero on-hand quantity, will not be permitted. (See the following topic: Alert messages.)

You can use only sales transactions to record negative inventory results. Other transactions, Adjust Inventory transactions, for example, cannot be recorded if they result in negative inventory amounts.

Tip:  MYOB AccountEdge uses the Weighted Average inventory valuation method

Alert messages:

There are situations that will still prompt an alert even if you've selected the preference to allow the sale of items with insufficient quantities. Both of the alerts involve transactions that would result in an item with a negative or zero value with positive on-hand quantity or the alternative -- a positive value with a negative or zero on-hand quantity.

If you receive either of these alerts, use the information in the following notes to resolve the situations:

    This will value your inventory at less than $0.00.
    The purchase of item xxx would leave you with no items on hand and a non-zero value in inventory.

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