What Is Negative Inventory?

The quantity of goods or materials in your system or on the book is less than the actual inventory quantity, which is equivalent to the profit

Negative inventory

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The quantity of goods or materials in your system or on the book is less than the actual inventory quantity, which is equivalent to the profit

Chinese name

Negative inventory

Equivalent to

Reasons for negative inventory:

When purchasing, the inventory quantity is less than the actual inventory quantity; for example: if the actual inventory quantity is 10 and the inventory quantity is 9, then there is one less.

When entering, the quantity entered was less than the actual quantity; for example: 10 were actually purchased and 10 were counted, but when 9 were entered, there was one more.

At the time of delivery, the system records more than the actual delivery amount, whether it is the production line picking or sales delivery. For example: there are 2 actually out of stock, but the system records 3, so the actual inventory quantity will be one more.

When your delivery accounting takes place before the receipt accounting, negative inventory is formed. Negative inventory always indicates that the actual movement of the goods must be entered into the system or recorded at a later stage.

In order to use negative inventory, you must (prerequisites)

Clearly allow each assessment scope and storage location in a custom system

2. In the material master record of a single material, set the negative inventory (warehouse data) in the identification plant

In some cases, for example, due to organizational reasons, receipts are entered before the corresponding receipts and materials are positioned in the warehouse, and negative inventory is required at this time.

Once the receipt has been recorded, the book inventory balance must again be adapted to the physical inventory, that is, the book inventory balance can no longer be negative

Note: If you use negative inventory, you must be sure that no negative inventory will continue to exist at key dates on the balance sheet, and that no negative inventory existed in the previous month at the month checkout.