What is a negative inventory?

A negative inventory is usually the result of a difference between a real hand inventory and a virtual inventory as monitored and calculated by a computer system. This usually occurs when an error has occurred or systems are not updated correctly, and indicates that the products have been sold or converted that should not be. Inventory problems can also occur when the products are lost, then the stocks are adjusted to remove lost products, and then find it without modifying stocks.

The term "negative inventory" may initially seem like a contradiction, because it means that the company can have less than zero of the product, but it is a reasonable consequence of inventory management. In principle, it suggests that the company has sold products that are not really there or sold products that were not part of the inventory record. This may result in incorrect communication between systems. If the manufacturing company has sold the item before being made, then it is possible that the stock system could have a demonstrationT negative inventory until the product is created and the number is not repaired.

A negative inventory may also occur as a result of incorrect stock counting or deducting products from incorrect business place. If a computer is calculated on your hand that a storage should have 12 specific items, but an employee is unable to actually find these 12 items, can be deducted from the store inventory. This is usually assumed that it was caused by some form of shrinkage and may be related to poor receiving procedures or theft. If all 12 items are found and placed on the shelf for sale without adjusting the store stores, their sale can create a negative inventory for this trade.

While a negative inventory is not necessarily disastrous for society, this can lead to poor records and more difficult to the Vehrary. Trade in the above example lost profits because nEměl item on the shelf, and can end up with too much product because new items are sent to the store and missing items are found. A negative inventory may also occur if the company incorrectly monitors the same item in multiple places. For example, if 50 items on location A and 100 items at B is then 100 sales at location B incorrectly documented as coming from a place and would create a negative inventory at a.