Negative Inventory

Can anyone help, we have an issue with Negative inventory.  I was under the impression there was a bundle to disable negative inventory can anyone point me in the direction of it?

Also if not can anyone help us disable negative inventory

Beginner Asked on February 27, 2020 in Inventory.
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6 Answer(s)

You cannot disable negative inventory. Negative inventory can be a result of many (bad) practices. For example, you could delete an past Item Receipt, or any number of such activities.

If you have a big negative inventory problem I would recommend you reach out to consultants to a) fix the problem and b) train your organization into proper data management practices and administration actions to resolve negative inventory as it occurs.

Advanced Answered on February 27, 2020.
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obviousy physically impossible to go onto negative inventory

 

But it is not impossible to do transactions out of order. If your receiving agent is gone, and no one can relieve an item, but your assembly line needs to physically use it, are you not going to let them use the parts? Are you going to tell them to wait to do their WO completions because the receipts haven’t been done?

In a perfect world, every transaction would be done exactly as it happens in the correct order. In reality that doesn’t happen, and that’s were negative inventory works as place holders for the late transactions to catch up. Not allowing negative transactions just makes everything super dependent on every other piece.

Now if you have constantly negative things, you have BOM problems, or procedure problems. But disallowing negatives will not fix either of those problems.

Rookie Answered on February 27, 2020.

Good Point well made 🙂

on February 27, 2020.
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Perform Inventory Adjustment to correct you negative inventory.

Rookie Answered on February 27, 2020.
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About three weeks ago I found a bundle to disable Negative inventory but I cant find it now, and Thanks, Im ok with the review negative inventory report and manageing an inventory adjustment I just want it disabled as it is obviousy physically impossible to go onto negative inventory so the mind boggles why it would be a feature

Beginner Answered on February 27, 2020.

It’s not a feature, it’s misuse of the system.

on February 27, 2020.

I like that phrase,  I am going to borrow that.  Well done.

on March 10, 2020.

I don’t think it’s a system misuse, It’s such as huge system lapse. In SAP for example, and other ERPs for example, by default it won’t allow to have inventories to have negative balance. If a system would allow negative inventory, it also allow users to commit erroneous transactions knowing that there’s not enough balance say in a particular location for one to withdraw quantity out of it.

on March 16, 2020.
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I don’t think it’s a system misuse, It’s such as huge system lapse. In SAP for example, and other ERPs for example, by default it won’t allow to have inventories to have negative balance. If a system would allow negative inventory, it also allow users to commit erroneous transactions knowing that there’s not enough balance say in a particular location for one to withdraw quantity out of it.

Rookie Answered on March 16, 2020.
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You can stop users from driving inventory negative via an item shipment by setting ‘Fulfill Based on Commitment’ to ‘Limit to Committed’   This setting is at Setup>Accounting> Accounting Preferences>Order Management>Fulfillment> Fulfill Based on Commitment

Rookie Answered on September 15, 2020.
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