If you have sales that resulted in an item having an on-hand quantity of less than zero

This topic applies to you only if you've marked the Lock Period preference in the Preferences window - Security view.

If you lock a period which contains unadjusted Sales transactions, the adjusting entry, when made, will be recorded as an Inventory Adjustment as of the adjusting entry date, not in the locked period.

An unadjusted Sales transaction is one in which the anticipated Cost of Sales that was recorded on the sale has not been adjusted by recording the actual item cost amount. Adjusting entries can be made with a purchase, an auto-build or an inventory adjustment.

If you want to record the adjusting entry in the same period as the Sales transaction, record the adjustment before you lock the period.

To see a list of your items with their on-hand count, use the Items List Summary report. Move your mouse over the Units On Hand number, and click the number to open the Items Register window.