I am trying to help a friend with her QuickBooks. She has set up many inventory parts accounts correctly as far as I can tell. The purchases are charged to COGS and the Sales are charged to a sales income account. However, when she set the items up she did not adjust the quantities on hand so many of her inventory items show a negative amount. The problem is that when she creates an invoice, the item is charged to purchases rather than sales. Is this because she has negative inventory amounts? I have used QuickBooks for 10 years and have never run into this problem.
Thanks for your help.
Carolyn