How You Transact Lots Without On-Hand Quantity

You can set up your organization to let you transact existing lots without on-hand quantity.

You may want to do this if you don’t need to track inventory balances for lot-controlled items, or when you want to allow negative quantities temporarily. This lets you avoid waiting for on-hand quantities to be transacted into stores before allowing their consumption.

You can transact against lots with zero on-hand balances for interorganization transfers, miscellaneous transactions, and subinventory transfers when your organization allows negative balances.

Set Up

You must enable the specific organization to allow negative balances:

1. In the Setup and Maintenance work area, use the Manage Inventory Organizations task:
   • Offering: Manufacturing and Supply Chain Materials Management
   • Functional Area: Inventory Management
   • Task: Manage Inventory Organizations
2. Search for the organization and select the Allow negative balances check box. This must be consistent with the inventory organization where the transaction is being executed.