Consider Negative on Hand

This field applies to APS. It controls how the system corrects a negative beginning on-hand balance:

• Select this field to account for a beginning negative balance by planning additional safety stock replenishment. When the APS Planning activity runs and the on-hand balance is negative, the system adjusts the item's safety stock value by this negative on-hand value. For example, if Safety Stock is 10, and the beginning on-hand is -10, the system plans as though the item's safety stock is 20 and generates a planned order for 20 (plus any adjustments for Order Minimum/Order Multiple settings) to replenish the safety stock. Keep in mind that if your negative on-hand value is caused by incorrect data entry, selecting this field could result in unwanted excess inventory.
• Clear this field to set the on-hand to zero when the beginning balance is negative and NOT generate any extra safety stock replenishment quantities to account for the negative on-hand value. For example, if your beginning on-hand is -10, the system does not adjust the safety stock value, but simply sets the on-hand to zero.