Handling a Product that has a Negative Quantity on Hand Prior to the Selected Transaction Date.

Occasionally, the need will arise to receive in a product that has a negative quantity on hand. This will prompt the following message:

Acctivate returns this message due to the way Cost of Goods Sold is calculated. Cost of Goods Sold is determined by the cost of the last receipt posted. Once a product has sold into the negative, essentially depleting the quantity from the last receipt, Acctivate makes an assumption that the value of the negative inventory should be based on the last receipt cost.

When a new receipt is posted, products included on the receipt have their Cost of Goods Sold amounts updated to the cost on the receipt. Acctivate recommends back-dating a receipt when one of its products has a negative quantity on hand in order to properly calculate this cost on transactions between the date that the product went into the negative and the receipt date.

If you receive a message similar to the one above, you will need to to one of two things:

• Change the transaction date of the receipt to the recommended date in the pop-up window. This can be accomplished by clicking “Yes” in the message box, or by manually changing the transaction date on the Inventory Receipts window.

Or,

• Post an Inventory Balance Adjustment to bring the quantity on hand to 0 before posting the receipt. This will allow you to keep the original transaction date, while bringing the on hand quantity out of the negative.