Enabling Physical Negative Inventory in Dynamics 365 Finance and Operations

Dynamics 365 Supply Chain Management

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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