Hi there, Diane628.
I can help you in handling this transaction.
By default, QuickBooks will prompt a warning when you attempt to sell an item with a zero or negative quantity on hand. Please know that you can receive inventory with or without a bill in the program.
To avoid having a negative inventory, you can create an item receipt to receive the items without a bill. This process will increase your inventory asset account and accounts payable. I'll show you how:
- Under the My Shortcuts section, select Home.
- Go to the Home tab, then click the Receive Inventory drop-down menu.
- Choose Receive Inventory without a bill to open the Item Receipt window
- Select the appropriate vendor name.
- Select Yes to receive a purchase order for the bill.
- Choose the correct purchase order, then select OK. If you didn't create a purchase order, you can directly enter the items, quantity, and amount.
- Select Save & Close.
Once you receive the bill, follow these steps to enter the corresponding payable for the item receipt:
- Head to the Home page.
- Select Enter Bills against Inventory.
- On the Select Item Receipt window, choose the correct vendor name from the Vendor drop-down menu.
- Tick the Use Item receipt date for the bill date checkbox to keep the original inventory availability date.
- Select the item receipt that corresponds to your bill. You may need to convert each bill separately if there are multiple item receipts.
- Click OK.
After that, you can now start paying your open bills. For more information about this process, you can visit this article: Accounts Payable workflow.
In addition, here's a reference that you can read to help track your inventory status in QuickBooks Desktop: Customize item reports.
Feel welcome to tag me in your comments and posts if you need further help in managing your purchases and inventories. Stay safe and have a productive week ahead.
