On-hand adjustment / negative inventory

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Posted on by joebongiorno

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I am having issues with inventory on hand and costing (see attached). I am trying to adjust the cost of my on hand inventory (as at Dec 22, 2018 in this example) but not able to because I have negative inventory. The correct cost should be 0.22/unit. But instead showing a sale of 19 units at total cost of 119,444.26. I have not idea where this cost is coming from. From scan below...the first item sold was on Dec 13. There were no other transactions before then. I am confused on why this is happening and how to fix this?

Any help? Thanks

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joebongiorno 454 on at

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RE: On-hand adjustment / negative inventory

I just spoke to my inventory specialist here at the company and we do something here that I was not aware of. At month end, the inventory specialist gets a report of all the negative balances. And a count adjustment is uploaded into AX and posted to bring all the negative balances to zero. So this will actually fix it all to zero quantity.

Thanks for all your help

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André Arnaud de Cal... 297,389 Super User 2025 Season 2 on at

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RE: On-hand adjustment / negative inventory

Hi Joe,

You can try to search for hotfixes for AX2009 on customersource: mbs.microsoft.com/.../AX2009HotFixList

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joebongiorno 454 on at

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RE: On-hand adjustment / negative inventory

Thanks. But where do I search for a hotfix?

Joe

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André Arnaud de Cal... 297,389 Super User 2025 Season 2 on at

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RE: On-hand adjustment / negative inventory

Hi Joe,

Our replies did cross each other. This behavior seems to be the same as I had seen in the past, but is about 12 years ago and was based on AX3.0. Try to see if you can find any hotfix. Also try to correct the entry as described in my previous reply. Once the inventory is closed and correct, try to avoid negative inventory as well.

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joebongiorno 454 on at

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RE: On-hand adjustment / negative inventory

Hi

As well can someone tell me how that cost with the $119,444.26 come from? I don't understand. This is a BOM item. The production item costing shows 22 cents.

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André Arnaud de Cal... 297,389 Super User 2025 Season 2 on at

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RE: On-hand adjustment / negative inventory

Hi Joe,

It seems like there is no positive transaction for this location. In that case, the closing will not adjust this transaction. If it is one transaction in one location, you can indeed try to use an inventory journal to clear the negative inventory. Then run a closing or adjustment. Please test it in a copy of your environment first.

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joebongiorno 454 on at

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RE: On-hand adjustment / negative inventory

Hi

The period is still open. I closed until Dec 22, thinking this would fix the issue, but it did not. I could cancel this close.

We are using weighted average by location for costing

This negative amount is just in one location. The other locations are not negative and I can adjust the cost for these. How do I fixt this? Do I do a count adjustment to bring the item to zero?

Thanks

Joe

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Ludwig Reinhard Microsoft Employee on at

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RE: On-hand adjustment / negative inventory

Hi,

In addition, is 2018 still open for recording transactions or have you already closed inventory and your financial periods for 2018?

Best regards,

Ludwig

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André Arnaud de Cal... 297,389 Super User 2025 Season 2 on at

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RE: On-hand adjustment / negative inventory

Hi Joe,

It is far from recommended to allow for negative inventory with physical items and a cost value. I have seen this behavior in AX3.0. At that time, it was almost impossible to get the cost correct. What costing model are you using? Can you check if there are customizations in this area? Can you also check if there are hotfixes related to inventory costing which are not installed? For AX3.0 there was an important fix at the time the customer decided to upgrade their AX version, but had not installed this fix. Note that a possible available hotfix would correct the behavior for new transactions; it will not correct the cost price automatically.

If you have a copy of this environment, try to run the inventory closing/adjustment to see what would be fixed or not. Do you only have 8 transactions for this item?

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