Skip to content

Negative inventory can be set up while setting ERP defaults in the System and General GL Setup section, in some situations you may need to let iX ERP negative the inventory, although it has some risks.

The risk with the ‘Allow Negative Stock’, iX ERP will start the Average Material Cost with 0, Then when the stock went below 0, This cause the insecurity about which prices to use during the ‘negative’ period. The Average Material Cost still stays there from the last transactions before the stock went below 0. This value is used when delivering items. When a PO arrives or an Item Adjustment is done, the average material cost is now based on this new value until the stock again is above 0. The GL Inventory/COGS accounts are adjusted to the correct prices for deliveries during the ‘negative’ period. A Cost Update is done in the background. Then, when stock is above 0, the normal algorithms work as before.

If you have the ‘Allow negative stocks’ marked, you can set the Standard Costs for new items, even if there is no stock in there yet. This value will be used during deliveries. When the correct prices are there, the GL accounts are updated just as before. But doing this will help you get an estimated COGS. If you don’t enter the Standard Cost, you will have to wait with COGS until there are better prices available (when entering POs or Item Adjustments).