Defining the Negative Inventory Option

Whether due to a time lag between the movement of stock and the recording of transactions or because of data entry errors, the system quantities might be less than the physical quantities in a given material storage location. For example, suppose you put away stock and then pick it to fulfill a customer order before the putaway transaction has been recorded. Regardless of the quantity discrepancies, it's critical to your organization to continue processing the transactions to keep the production schedules and customer shipments on track.

To help support fast-paced manufacturing and distribution environments, you can enable key transactions in PeopleSoft Inventory to drive quantity balances negative.