Negative stocks

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Posted on by Andriej

Hi,

I want to allow negative inventory for some items.

I have created an item model group STD_negative with negative physical stock and created a new item XYZ.

I have also allowed negative physical stock on the stock and location profile.

And some day I see negative onhand quantity on items that are in STD item model group where negative stock is not allowed.

I read this topic:

and there is mentioned that two options are required: item model group and warehouse.

But I have checked that I can go below 0 quantity when I allow negative stock at the warehouse and location profile level, nor at the item model group level.

How it works?

In AX2012 it was not possible to go below 0 when there was no negative stock on the item model group. In the March 2022 topic, this was also confirmed in D365.

Were there any changes with some platform update?

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Laurens vd Tang 4,869 Super User 2026 Season 1 on at

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Hi Andriej,

What is the setting on your storage dimension?

The negative inventory setting on the item model group is only enforced at the granularity as specified by the "physical inventory by dimension" checkbox on the storage dimension group associated with the product. if only the "site" dimension has this field marked, negative inventory would be allowed by location and warehouse.If the input data is inaccurate, negative on hand records will indicate that the inventory information in microsoft dynamics 365 supply chain management is out of sync with the real world.

http://knowledgebasemin.com/

Regards,

Laurens

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Andriej on at

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Hi Laurens,

thanks for your reply!

Storage dimension group is set:

Do you have idea how to set negative stock only for some items? New item storage group for them? But with with setup, if yes?

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Laurens vd Tang 4,869 Super User 2026 Season 1 on at

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Hi Andriej,

What is the setting of negative inventory on your warehouse?

My advice would be to configure a new item model group for the items where you want to allow negative stock.

What is the scenario/requirement to allow negative inventory?

Regards,

Laurens

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Andriej on at

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Hi Laurens,

at warehouse llevel we have physical anf financial warehouse set to yes.

And we have two items: with item model group with negative physical inventory and other item without negative physical inventory. And I think it is weird that on both items we have negative onhand inventory...

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Andriej on at

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We would like to allow negative stock for some items and for some not at the same warehouse.

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Laurens vd Tang 4,869 Super User 2026 Season 1 on at

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Hi Andriej,

I think that's the issue. I've tested the following scenario

1. Negative inventory is not allowed on the item model group

2. On the warehouse it is allowed

3. I'm able to post the packing slip for an item without inventory

When the parameter 'Physical negative inventory' is set to 'Yes' on a warehouse and on the item model group it is not allowed, Dynamics allows negative inventory for a particular warehouse.

Regards,

Laurens

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Laurens vd Tang 4,869 Super User 2026 Season 1 on at

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My advice would be set the parameter 'Physical negative inventory' to 'no' on warehouse level and create a new item model group for the items where you want to allow negative stock.

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Andriej on at

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Hi Laurens,

thank you so much!

It works as you said. The stock parameter is above the item model group parameters and works for all items in specific warehouse. The separation of items into negative and 'positive' stock is set on the item model group with warehouse parameter set to 'no'.

I remember that some time ago the parameter on the stock was not working, but now it is ok.

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