- Enabling physical negative inventory in Dynamics 365 Finance and Operations allows organizations to create sales orders even when inventory levels are insufficient.
- Physical negative inventory is useful in scenarios where stock may be incoming or when manufacturing units are involved.
- Enabling physical negative inventory involves configuring settings within Dynamics 365 Finance and Operations, specifically within the Item Model Group.
- Proper procedures must be followed to manage physical negative inventory, including ensuring the availability of physical inventory during shipment, transferring stock if necessary, and implementing regular inventory closing procedures.
- Failure to comply with proper procedures can lead to issues such as invalid cost value of items and inaccurate inventory valuations.
- By following the steps outlined in the article, organizations can effectively manage physical negative inventory within Dynamics 365 Finance and Operations, ensuring smooth operations and accurate inventory valuations.
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