Negative inventory value with no remaining quantity.

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Posted on by Esteban Navarro

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Hello everyone,

Thanks in advance for any help.

I have multiple products with zero units in a location, but with remaining value. This happened because multiple negative and positive adjustments, as well as transfers, were made while modifying the cost. How can this be fixed or reversed? The main issue is that hundreds of products have this issue, and it has been happening for years.

For example, in one location, my value is through the roof, but there are no quantities.

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Dynamics 365 Business Central

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Ahmad Subhani 618 on at

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Hi,

Hope you are doing well.

There is one field name as Average Cost Period. Check what you have select. For Example you do all the Adjustments on 1 December and you select Day over here. Then Try to check that what value is coming on 2nd Decemeber

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Valentin Castravet 32,152 Super User 2026 Season 1 on at

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There could be several causes for this issue. Have you run 'Adjust Cost Item Entries?' What is your costing method? If it's 'Average,' check the inventory setup to see whether the 'Average Cost Calc. Type' is set to 'Item' or 'Item and Location.'

If your costing method is 'Average' and the 'Average Cost Calc. Type' is set to 'Item' instead of 'Item and Location,' running the inventory valuation report for a specific location can result in these inconsistencies.

If its neither of the above two, you can check this thread as well - Inventory Valuation (0 quantity but negative amount) — mibuso.com. This problem comes up once in a while so there are a lot of threads on it.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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YUN ZHU 99,055 Super User 2026 Season 1 on at

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Hi, Microsoft explained this issue in its official documentation.
Business Central Design Details: Known Item Application Issue (where the inventory level is zero although open item ledger entries exist)
More details: https://learn.microsoft.com/en-us/dynamics365/business-central/design-details-inventory-zero-level-open-item-ledger-entries?wt.mc_id=DX-MVP-5004336

Hope this helps.

Thanks.

ZHU

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