Negative Stock Opening

avs_MBS

Dear All,

Please Let me know how to put opening in case of negative inventory values and quantities.One Of my Client Having legacy system in which inventory is negative for many items. After valuation of all inventory(Postive + Negative) its matched with Inventory account in balance sheet. Please Suggest .thanx In advance

Alex_Chow

It's not recommended to have a negative beginning balance. It's also recommended for the client to do a physical count and put the physical count into NAV as beginning balance instead of using the numbers from the legacy system.

David_Singleton

I agree with Alex, that you really can't go-live this way. You need to count your inventory. Clearly if there are negatives then the data is wrong, and can not be used.

Count the items and put the correct stock in or you will regret it for a long time.

AdamRoue

That is actually very funny.

Recommend to your client that a full stock check should be done prior to entry of the opening stock, and then if the count reveals any negative stock on a shelf you can promise to put it into the system!!

A simple point, whilst you should balance the inventory accounts what is more critical is the stock is accurate at go live, so get the stock correct in the legacy system, it is physically impossible to have negative stock on a shelf, correct it, flush it through do whatever as this will affect other accounts in teh opening GL takeover. As David says, get this right now, otherwise regret it for a very long time (this includes the take on unit cost)