Allow Negative Inventory Levels

• The cost is automatically assigned at the time of purchase.
  

• There is no other way to enter the cost of a good sold in an inventory record.
• The cost of a good would be tracked through the Purchase Invoice.

Option 1:

1. Create a sales order to provide to the customer
2. Purchase the inventory
3. once inventory is received convert the original sales order to an invoice.

Option 2:

• The Adjust Inventory option could be used to change the Cost
• Using the default costing method of Average Cost, Cost is a simple calculation: Value divided by quantity
  • example:
  • 20 books of a total value of $1000 would mean that each book has a cost of $50
  • To change the cost from $50 to $40 (for any future transaction)...
  • use the Adjust Inventory feature to decrease the value of the inventory by $200
  • This would change the total value from $1000 to $800. $800 / 20 equals $40

Scenario A:

1. No purchase invoice was entered before sale to bring inventory in
2. Sales invoice is entered while inventory goes below zero.
3. Cost of Good Sold account is not affected
4. Enter Purchase invoice when available
5. Adjust COGS (cost) by following Option II above in this KB

DocLink: How to sell inventory below zero