We just found out that we have many negative items. and we are sending report to the Bank. However, we brought those to 0, but money wise how those negative item could affect our report.
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To correct one statement earlier in this thread, if you are not tracking lots, serials, or using bins, GP will allow inventory to go negative. Frequently small shops will receive products, ship and invoice them, and later perform the PO receiving. Inventory needs to go negative for this to work. If you are tracking, they you will not be allowed to fulfill until sufficient quantity is on hand.
Like Leslie said, you MUST use Inventory Adjustment transactions and enter a value for the inventory to have it maintain a balance between stock status and GL. If you made these adjustments any other way, reverse them and do the Inventory Adjustments.
Yes is one person who i sending the GP Stock Status report and tril balance to Bank without taking this in consideration,.
Thank you!
Pat, are you sending a GP Stock Status report? A GL Trial Balance report? A manually created report in Excel? Or some other type of report?
As Leslie, Saif, and Mahmoud have stated, negative inventory will show in a Stock Status report as negative quantity and negative value and will appear in your General Ledger as a reduction in inventory value in the inventory accounts.
Do you want to allow negative inventory in your company? If not, in Sales Order Processing Setup Options, uncheck the box in the lower part of the window that says "Override Quantity Shortages" and in Inventory Setup, uncheck "Allow Adjustment Overrides", "Variance Overrides" and "Transfer Overrides".
This is a Inventory report for The bank, monthly we send inventory and A/R to show our sales according to the borrowing base that the Bank require.
I do believe that you could still provide further details on this issue, and most importantly the following questions;
Your feedback is highly appreciated,
The negative stock can result from two situation:
1) Most commonly, interrupted Inventory/Sales transaction posting. the same might impact one of those table:iv10200,iv10201 or iv30300. any combination of them. In such cases, mostly, GP IV reconciliation does not solve the issue hence you need to do the analysis among those tables manually and fix the issue after identifying the corrupted table and record.
2) if you have enabled the option Allow Adjustment/ Variance/ Transfer Overrides under Inventory control. in such scenario you shouldn't have an issue "Money Wise" but your physical and book stock will not match for sure.
Regards,
Hi,
If you have done an inventory transaction to in raise your inventory balance to zero, then the entry would debit inventory and credit the inventory offset account. You will need to look at what posted to GL to evaluate the financial statement impact. The default value is to make the adjustment at the current cost value.
Kind regards,
Leslie
Not enough info. Need more detail. What is the content of the report are you referring to?
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