• juju
  • juju
  • Senior Member
  • Offline
  • From: Indonesia
  • Registered: 02/02/2011
  • Posts: 62

Topic: Zero/negative inventory handling

Hello FA

After I disable the "Allow Negative Inventory" in "System and General GL Setup" on GL Inquiry account I found the system entry automatically performed. on the inventory adjustment account with a memo "Zero / negative inventory handling"

What I want to ask
1. why did it happen and how the FA system is working.
2. if this is related to the inventory on goods where, so I can inquiry on the entry.

Thanks & Best Regard
Jujuk

ING NGARSO SUNG TULODO, ING MADYO MANGUN KARSO, TUT WURI HANDAYANI
  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,085

Re: Zero/negative inventory handling

Hello,

If the Inventory has been negative for a while and you remove the 'allow negative...', FA will make a recalculation of values. This should be ok. You can test the Standard Cost in Items and Inventory tab.

/Joe

3 Reply by juju (edited by juju 08/28/2011 10:53:00 am)

  • juju
  • juju
  • Senior Member
  • Offline
  • From: Indonesia
  • Registered: 02/02/2011
  • Posts: 62

Re: Zero/negative inventory handling

What if memo journal equipped a description of the goods that are recalculation to make easier the inquiry,
Where "function in php / files" which handles auto journal negative inventory recalculation.

Thanks for sharing with me

Jujuk

ING NGARSO SUNG TULODO, ING MADYO MANGUN KARSO, TUT WURI HANDAYANI

4 Reply by blurify (edited by blurify 03/19/2015 02:13:32 pm)

  • Registered: 03/19/2015
  • Posts: 2

Re: Zero/negative inventory handling

Hi guys,

I'm sorry I'm so headache with this case. I have the same problem, "Allow Negative Inventory" has removed but I have "Zero/Negative Handling" journal in GL, how to handle this? would it be possible to make this Journal is gone in GL?

Thanks a lot

5 Reply by apmuthu (edited by apmuthu 03/19/2015 03:52:33 pm)

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Zero/negative inventory handling

Do you want to make it positive inventory only? Do you want to avoid recalculation after switching back from Allowing negative inventory? Then manually set the value in the sys_prefs table and config.php file.

apmuthu's Website

  • From: Kenya
  • Registered: 11/21/2017
  • Posts: 34

Re: Zero/negative inventory handling

What other circumstances would this journal be created? I have never ticked the "Allow Negative Inventory", and so far I have two Journals. How do i find out how the journal amounts were calculated?

This is in version 2.4.3

Regards,
Mugao

  • From: India, TN, Karur
  • Registered: 05/16/2014
  • Posts: 1,181

Re: Zero/negative inventory handling

The  auto entries created, when the stock goes negative.   If you disable the Allow Negative Inventory, the stock may go negative. the entries created to balance the GL entries

When you have 10 items from Purchase GRN and which has not placed Invoice and you made sales for 5 items and after that,if you void the GRN, the stock will go 5 items negative. When this situation comes the entries are created automatically.

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  • From: Kenya
  • Registered: 11/21/2017
  • Posts: 34

Re: Zero/negative inventory handling

Thank you for the feedback, on my part i think FA should not compensate for it by creating journals, because these journals will cause a variance between Subledger and GL, and they cannot be explained to auditors.

Regards,
Mugao.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,089

Re: Zero/negative inventory handling

Manually deleting such Journal entries should not cause imbalance..... but you will be blind to it later!

apmuthu's Website

  • From: India, TN, Karur
  • Registered: 05/16/2014
  • Posts: 1,181

Re: Zero/negative inventory handling

I think, there is one more thing, we need to fix in void transactions.

When we try to void a GRN, and with that GRN void, if the inventory goes negative But the user didnt check the "Allow Negative Inventory". we have to prevent it by showing a warning, the inventory may goes negative.

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