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Supply chain | Supply Chain Management, Commerce
Suggested Answer

Allowing negative inventory for selected items in a specific non-WMS warehouse

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Hi D365 Community,

We are assessing whether standard D365 Supply Chain Management functionality can support the following requirement without Advanced Warehouse Management or custom development:

  • A standard, non-WMS warehouse must be configured to allow negative inventory.
  • Only selected items in that warehouse should be permitted to transact into negative stock.
  • Other items in the same warehouse must remain blocked from going below zero.
  • The selected items may need to allow negative physical inventory, but negative financial inventory should preferably remain blocked unless specifically approved.
Proposed configuration:
  1. Enable negative physical inventory on the selected warehouse.
  2. Create separate item model groups:
    • Physical negative inventory = Yes, Financial negative inventory = No
    • Physical negative inventory = No, Financial negative inventory = No
  3. Assign items to the appropriate item model group.
  4. Ensure that the Warehouse dimension is marked as Physical inventory in the storage dimension group.
Please confirm:
  1. Is this fully supported using standard D365 Inventory Management without enabling Use warehouse management processes?
  2. Must both the warehouse and the item model group allow physical negative inventory before an item can go negative?
  3. If the warehouse allows negative inventory but the item model group does not, will
  • Suggested answer
    Laurens vd Tang Profile Picture
    5,065 Super User 2026 Season 2 on at

    Good day,

     

    1. Is this fully supported using standard D365 Inventory Management without enabling Use warehouse management processes?
     

    Yes

     

    2. Must both the warehouse and the item model group allow physical negative inventory before an item can go negative?

    No, the item model group setting is sufficient. Example:

     

     


    3. If the warehouse allows negative inventory but the item model group does not

    If the parameter “Negative inventory” is set to “Yes” on the warehouse but not on the item model group, then system still allows negative inventory. Example:

     

     

     

    Best regards,

    Laurens van der Tang

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