Having inventory items with negative quantities on hand (QOH) in advanced inventory causes problems within your QuickBooks Desktop. For example, if you transfer an item with a negative QOH from one inventory site/location to another, the transfer will show a positive quantity for the item in the second site/location and an increased negative quantity for the QOH at the original site/location in the Item List and the Inventory Stock Status by Site report.
Enterprise Solutions with Advanced Inventory allows you to transfer inventory from one site/location to another. There may be times when the quantities on hand (QOH) for some inventory items drop into the negative. This usually occurs when you sell an inventory item (either by invoice or sales receipt) and there is not enough QOH for the item at the time it is sold. QuickBooks will warn you that there is not enough of the item to sell, but will allow you to process the transaction anyway. You may actually have the inventory in stock, but it may not have been entered “as received” into QuickBooks. Working with negative QOH for inventory items creates some unintended consequences such as showing a positive quantity for an item when there is nothing in stock.
For transferring an inventory item with a negative QOH from one site/location to another, the solution is to make two inventory adjustments after the transfer. The first adjustment is to set the QOH of the item in the original site to the correct negative amount and the other adjustment is to set the correct negative amount for the item in the second site location.
Steps to fix the issue:
The Inventory Stock Status by Site report now shows correct amounts for Widget#1 at the respective locations and the Item List shows the correct total QOH for Widget#1.