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Hi All expertise,
in Customer/item statistic report, we noticed that some of the items are in negative quantity and revenue.
Does anyone know what's the possibilities?
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Hi Avangeline,
This might be return transactions from you customers in a specific period.
Can you check the item and check the item transactions in detail?
Best regards,
Ludwig
hi Ludwig,
thanks for your reply.
However, there are cases where quantity = 0 but Revenue and margin in negative value.
Whats the reason for such cases?
Hello Avangeline,
A 0 quantity and a negative value can be caused by inventory valuation.
That is, imagine that you sell a product.
At the time of sales, the cost price of the item was $100.
When the items are returned the cost price changed, let's say to $120.
If you do not mark the sales order and the return order then there might be a difference of $20 remaining in your warehouse.
The same applies if the cost price changed to $80 or any other value.
Im a bit lost. at what circumstance the quantity will be in 0?
Hi Avengeline,
Imagine you sell 1 pcs of a product through a sales order. The cost price of the product at the time of sales is $1000.
After invoicing the customer, the customer returns the 1pcs and you create a return order to track that return.
Imagine further that the cost price changed to $750 in the meantime.
If you use a current costing method, such as weighted average, FIFO, etc. the price used for the return will be $750.
Now we have an issue of -$1000 and a return of +$750, resulting in a negative value of -$250 and a quantity of 0.
Does this example clarify things?
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