What happens when stock goes negative?

When more stock is consumed or sold than available on hand, the product's stock quantity drops below zero. Zenoti allows this to prevent blocking point-of-sale transactions. However, negative stock affects cost calculations — when a subsequent PO delivery brings stock from negative to positive, the system applies a FIFO-based correction that resets the average cost to the incoming lot price (reflected in the Offset column of the Cost of Goods report). To avoid negative stock issues, configure reorder alerts and run audits regularly. See Negative inventory FAQ for more details.