What is Negative Inventory? The Quickbooks Negative Inventory issue (also called the Negative Quantity on hand issue) is caused when you enter sales transactions before entering purchase transactions. This means that you have sold inventory items that are not in stock. This is very bad in Quickbooks because it causes the following issues: Data Damage forcing you to constantly rebuild the file to bring your B/S to balance Cash-basis Balance Sheet is out of balance Profit and COGS amounts are incorrect Balance Sheet Inventory Account amounts are incorrect Incorrect Vendor Reports Error: LVL_ERROR--Error: Verify Account: Invalid balance. Amount overflow has occurred. Rcrd = 99. Error: Verify Account Balance failed. Calc bal = 0.00, List bal = *overflow* An overflow error has occurred. One of your accounts has exceeded the maximum value allowed. Review the balances in your chart of accounts and lower the value of the account to less than 10,000,000,000,000. Error: "It looks...