Negative Stock at DC level -Business Importance

[Former Member]

Hi All,

Can anyone suggest me what is the significance of the Negative stock at DC (Warehouse level) from Business standpoint ?

[Former Member]

Hi Ankur,

Negative stocks are required if, for example, goods issues are entered before the corresponding goods receipts for organizational reasons and the material is already physically located in the warehouse.

If the first movement of a material is an outward movement, in Customizing for Inventory Management, you can activate the automatic creation of storage location data at goods issue for plant and movement type.

Once the goods receipts have been posted, the book inventory balance must correspond to the physical stock, that is, the book inventory balance must no longer be negative.

Prerequisites

To work with negative stocks, you have to:

· explicitly allow this in the Customizing system for each valuation area and storage location

· set the indicator Neg. stocks in plant in the material master record of the individual materials (storage data)

Negative stocks are allowed for special stocks if you have activated negative stocks in the valuation area and for the special stock concerned in the plant. You do not need to activate negative stocks in each material master record.

Features:

For unrestricted-use stock you can work with negative stocks for the following materials:

· Materials with standard price

· Materials with moving average price

and for the following special stocks:

· Vendor consignment goods (K)

· Stock of material provided to vendor (O)

· Consignment stock at customer (W)

· Sales order stock (E)

· Project stock (Q)

· Returnable packaging at customer (V)

· Returnable transport packaging (R)

Example:

Negative stocks always indicate that physical movements must be entered in the system at a later stage.

1000 pieces of a material are delivered. Due to insufficient time, the goods receipt is not yet entered in the system.

Physical stock: + 1000 pieces

Book inventory balance: 0 pieces

The material is needed urgently, and 100 pieces are withdrawn from the warehouse. The goods issue is entered in the system straightaway.

Physical stock: + 900 pieces

Book inventory balance: - 100 pieces

The goods receipt of 1000 pieces is posted at the end of the day.

Physical stock: + 900 pieces

Book inventory balance: + 900 pieces

BR

Ajaya Kumar Mishra

[Tobias_König · Accepted solution]

Hi Ankur,

another reason for allowing "Negative Stocks" could be, that one won't delay the booking of e.g. goods issues for customer orders due to inventory differences.

For example:

- You want to fullfill a customer order with 100 PCE. You create a delivery (assuming you don't use an ATP Check) with 100 PCE. Stock in SAP is only 99 PCE. You're delivery is send to the WMS, there, the goods are picked and packed.

- You receive back the delivery with 100 PCE from WMS. Now, if you want to post goods issue (without allowing "Negative Stock"), it is not possible. The consequence is, that you are not able to create an invoice.

This will last until you have cleared the inventory difference.

Hope it helps.

Regards

Tobias

[Former Member]

Thanks Tobias for the detailed explanation.