What is negative inventory
Negative inventory occurs when the system records more outflow (sales, consumption, adjustments) than the available on-hand quantity. For example, if a center has 2 units on hand and a sale of 3 units is processed, the resulting on-hand quantity is -1.
This can happen when:
A product is sold at the point of sale but the stock receipt (purchase order delivery) has not yet been recorded.
A service consumes products that were not yet received.
Stock adjustments or returns are processed out of sequence.
Multiple transactions occur simultaneously at a center with low stock levels.