NEGATIVE STOCKS DESPITE DISALLOW SETTING

A2000 ONLINE SUPPORT DEPARTMENT

KNOWLEDGE BASE

DESCRIPTION        WHY NEGATIVE STOCKS IN OUR SYSTEM PERSISTS DESPITE SETTING OF                                     “DISALLOW NEGATIVE STOCK”?

1.  CASE STUDY

Let us look at a very normal looking stock ledger:

2.  ABNORMAL TRANSACTIONS

Some Abnormal Transactions May Take Place…. Like:-

2.1 Back-dated Edits

Assuming user logs in on 4-Nov, and run an EDITS a back-dated transaction CR-567. User increased the quantity to 22 Bottles. The system allows (because the Balance Qty Check is on stock balance on the current login-date (which is 4-Nov and it shows a balance of 40 Bottles). If user had done an edit during 30-Oct (where available stock balance then was 19 bottles), the system would have blocked the edit. 

The resultant Stock Ledger is now: -

Even though closing stock on 4-Nov is still positive, the stock costing on 30-Oct was already messed up. This is result of allowing a back-dated transaction to be edited and this is the impact of it. For better integrity of stock costing, please disallow back-dated edits for staffs. If this is needed for operational reason, remember to replenish any negative stock status and re-calibrate correctly the stock ledger.

2.2 Incoming Stock Adjustment

Refer to the original stock ledger in at the beginning of this document. Assuming user discovers that a product in Stock Transaction (IT-234, created on 2-Nov) was an erroneous entry. On 4-Nov, he performs a back-dated adjustment to IT-234, and deletes away the item in the stock transaction. The resultant stock ledger is:-

As incoming stocks are not subjected to the negative stock rule, this adjustment will suddenly create a negative stock situation. 

3.  HOW DO WE PREVENT SUCH ERROR?

3.1 Operations Can Allow Ban of Back/Post-Dated Transactions

3.2 Operations Cannot Allow Ban of Back/Post-Dated Transactions

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