My Account Quick Report shows a negative and incorrect balance for inventory, but my inventory register is correct. Unfortunately, the Quick Report figure is showing on my Balance Sheet.

Hello there, NDJones. Let me share some insights about the negative balance in Account QuickReport.

Let's make sure that you've selected the correct account when running the quick report to drill down the balances/amounts correctly. If it's negative, this can be affected by the following:

• You simply sell more products than you actually had.
• You didn't enter all of your purchase orders into QuickBooks.
• You miscounted your physical inventory so the quantity in QuickBooks is different.
• The quantity you got from your vendor didn't match the purchase order in QuickBooks. This can cause a miscount.
• You didn't convert your purchase orders to bills. QuickBooks only count items as inventory after you create a bill.

To fix the issue, you can do the following:

1.  Review your quantity on hand
2.  Convert open purchase orders to bills
3.  Do a physical inventory
4.  Order more products

You can also review the detailed instructions from this article: Fix negative inventory issues in QuickBooks Online.

The balance sheet report contains the asset, liability, and equity accounts. The inventory account quick report shows the Inventory Asset accounts which is why the negative balance is reflected in the Balance Sheet. You can check out this article to know more about how inventory tracking impacts your financial reports: Impacts of inventory tracking on the Balance Sheet in QuickBooks Online.

If you have further concerns about the negative balance or any QuickBooks-related, feel free to come back here in the Community. We're here to assist you 24/7.