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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Physical negative inve...
Supply chain | Supply Chain Management, Commerce
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Physical negative inventory

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Posted on by TrondD 35

You can set physical negative inventory on both item model group and on warehouse. Can anyone explain why, and if those parameters differ, which one is considered?

I see that if physical inventory is set to 'no' on item model group, and 'yes' on the warehouse, I'm able to post retail statements and go negative (sales orders are created and invoiced). But I'm not able to pick items on a sales order, if there's no inventory.

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  • Suggested answer
    Danny Bilodeau Profile Picture
    Danny Bilodeau 4,918 Super User 2025 Season 2 on at

    Hello Trond,

    Item Model Group allows negative for associated Items while warehouse is for items in that warehouse. As its a cobination item & warehouse, both are required.

    I think the scenario you describe where sales order are invoiced has more to do with the negative financial inventory = yes.  

    Here is a TechTalk where the Inventory Costing experts from Microsoft.  At minute 31, they explain the difference in behavior for both these setups.

    community.dynamics.com/.../part-1-inventory-accounting-setup-in-dynamics-365-supply-chain-management-february-15-2022

    Regards,

    Danny

  • Suggested answer
    Mehdi AMRANI Profile Picture
    Mehdi AMRANI 1,422 on at

    Hi,

    Both conditions needs to be satisfied.

    Regards,

    Mehdi

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