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What is the reason for my Negative On Hand Quantity?

edited Dec 3, 2019 2:22PM in Ask A Guru

The best way in determining what causes your on hand to be in a negative state is creating a modified Inventory Valuation Detail Report to know at what point you started selling "underwater" inventory or when you entered inventory-decreasing transactions more than what you had available.

Most of the time, the reason for this is when the Fulfill Based On Commitment Preference (Setup > Accounting > Order Management > Fulfillment) is not set to Limit to Committed. Anything but this preference would allow you to fulfill orders even if you don't have enough quantities to enter for this transaction.

Below are the steps to create the report:

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