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NSC | What Causes Negative Inventory?

edited May 30, 2024 8:08PM in Accounting / ERP

Scenario

User wants to know what caused the negative inventory in their account.

Solution

This could happen if your preference setup allows the system to push through with Sales Orders or other inventory reducing transactions to push through even if the current Quantity on Hand is Zero or Lower than what will be deducted.

This preference is the Fulfill Based on Commitment. To see this you navigate to Setup > Accounting > Accounting Preferences > Order Management Fulfillment.

Depending on the Fulfill Based on Commitment preference, a company may experience having negative inventory. This is usually encountered when the preference is set to either 

Niks Blando-Oracle | Ask A Guru?️

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