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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Negative inventory - C...
Finance | Project Operations, Human Resources, ...
Suggested Answer

Negative inventory - Costing

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Posted on by rtcorrea 5

Hi All,

We are using FIFO perpetual for inventory valuation.

My question is when a transaction causes inventory to go negative (i.e. a sale or consumption of a raw material), what cost does GP use? 

We have multiple sites where inventory is received if that factors in.

Thanks so much for your input. 

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Microsoft Dynamics GP
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  • Suggested answer
    Shannon Aune Profile Picture
    Shannon Aune Microsoft Employee on at

    Hi rtcorrea,

    Manufacturing will not impact how the costs are determined when you do a transaction that drive inventory negative for your raw materials. Manufacturing will create inventory adjustments and those adjustments will be treated the same as an inventory adjustment. You will get a line in the IV10200 with only a qtysold and the current cost is used, when inventory is brought in to cover the negative amount a cost adjustment will be created to update that inventory adjustment to the correct cost.

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