Explain Negative stocks

For some materials, it maybe that the received delivery cannot be entered immediately as GR into the system, while a GI has to be done.

Negative stock will occur where the GI quantity is larger than the book quantity. Negative balances might be required for some organizational reasons, GI is entered before the corresponding GR, but the material is physically available in the stores.

Negative stocks always indicate that physical movements have to be entered in the system at a later stage. Negative stocks are allowed for unrestricted stock, block stock including the following special stock types;

·         Vendor Consignment (K)

·         Stock of material provide to vendor (O)

·         Consignment stock at customer (W)

·         Sales order stock (E)

·         Project stock (Q)

·         Returnable packaging with customer (V)

·         Returnable transport packaging (M)

Before carrying out physical inventory, negative stock should be cleared out.

Customizing;

Inventory Management and Physical Inventory àGI/transfer Postings à Allow negative stocks à valuation area à Plant level à Storage Location (at plant level sp stocks can be set for negative stock option).

Negative stock should be allowed in the material master, plant view.