Best practices

Monitor negative balances regularly. Use the Current Stock report with a stock filter of All or Out of Stock to identify products with negative quantities.

Investigate the root cause. Negative stock usually signals a process gap — delayed PO deliveries, missed receipts, or data entry errors. Address the underlying cause rather than adjusting the stock.

Receive purchase orders promptly. The longer stock remains negative, the greater the potential impact on cost calculations and financial reports.

Review cost after receiving stock against negative balances. After a PO delivery brings a product from negative to positive, verify the average cost on the Current Stock report to ensure it reflects expected values.

Consider disabling Allow sale at any stock level. If negative inventory is frequent and causing reporting issues, evaluate whether strict stock enforcement is feasible for your operation.